Great news for the AI industry: market cap continues to be inversely correlated with burn rate! Why make a profit, when you can just forecas…

Gary Marcus critiques the AI industry's financial model, noting that companies with high burn rates continue to see rising market valuations despite unprofitable operations. The post sarcastically questions the sustainability of valuing AI companies primarily on growth forecasts rather than actual profitability, highlighting a potential disconnect between market expectations and business fundamentals in the sector.

Source: Gary Marcus (X) | 2026-05-08