AI companies are already profitable (in the way that matters)

I've occasionally heard people suggest that at some point AI companies are going to run out of money, the cost of using AI will shoot up, demand will collapse, and the AI bubble will be over. At first glance this risk seems real. OpenAI spent $25 billion in the first half of 2025, on revenue of just $4 billion. Whilst data is sorely lacking for other top AI labs, our best guess is that they're burning through cash at similar rates. Scaling laws imply that we need exponentially more compute to achieve linear AI performance improvements, so we should only expect this situation to worsen in the future. A few more doublings, and OpenAI could be spending hundreds of billions on training runs - something likely unsustainable even for the largest tech companies. However most of these expenses are infrastructure expenses, building out the data centres needed for further training runs and serving future customers. If we look at the actual cost of serving, AI labs are already profitable, and hav