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Vishu Bheda

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Medial • 11h

𝗔𝗜 𝗳𝗲𝗲𝗹𝘀 𝗹𝗶𝗸𝗲 𝗮 𝗴𝗼𝗹𝗱 𝗿𝘂𝘀𝗵. 𝗕𝘂𝘁 𝗺𝗼𝘀𝘁 𝗺𝗶𝗻𝗲𝗿𝘀 𝗮𝗿𝗲 𝗯𝗿𝗼𝗸𝗲. Look where the money really goes: 1. You pay $200 for an AI app (like Cursor, Jasper, Lovable). 2. The startup sends $500 to OpenAI for API usage (mostly burning VC money). 3. OpenAI pays Microsoft $1,000 for cloud servers (also burning VC money). 4. Microsoft spends $5,000 on NVIDIA chips to power those servers. Who wins? NVIDIA – sells chips, prints record profits. Microsoft/AWS/Google – rent out compute and take a cut. Who struggles? Most AI startups – just middlemen calling OpenAI’s API, burning investor money. Even OpenAI – huge revenue but insane infra costs; still relies on massive outside funding. Examples: Jasper grew fast but struggles with retention and infra costs. Many AI apps fully depend on OpenAI — if costs rise or APIs change, they’re at risk. Meanwhile, NVIDIA keeps breaking profit records every quarter. The reality: most of the money flows up to infra giants, while the majority of AI players are barely surviving on hype and investor cash.

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