You may have seen posts about the subsidy required by CHUTES to stay competetive and the "in depth analysis" that followed. The thought process being that it is essentially being heavily subsidised, which is artificially inflating the value proposition and valuation of TAO and the BITTENSOR ecosystem.
These reports fail to mention a key element, which is the insane subsidies, capital injections and funding rounds that keep centralised AI projects afloat, and the eyewatering losses even the most renowned tech companies are absorbing in their pursuit of AI development.
Take OpenAI - first half of 2025 saw an operating loss of over $7 billion. Yes, BILLION.
Anthropic - expects an operating loss until at least 2027 whilst huge capital investment continues to flow in. This investment is to maximise market share and product capacity and capability.
These tech companies have raised tens of billions in private investments in order to develop their products, aggressively outcompete smaller projects and to enable them to happily run at a loss whilst continuing to invest unimaginable figures in further developing the product. All of this is possible because of the conviction that AI is going to become as fundamental and revolutionary as the internet or smartphones.
Now, back to TAO and BITTENSOR. One of the biggest decentralised competitors to centralised ai products, working with capital that are fractions of what tech startups are accessing. BITTENSOR market cap is around $3.5 billion - anthropic just raised nearly 10x that amount in a private funding round. This is a modern day David vs Goliath story. OF COURSE it will be creating subsidy systems in the first years, in order to incentivise growth, development and productivity. THAT IS NORMAL and EXACTLY what fintech and tech startups do as standard and have been doing for so long. Yet still this post keeps being reposted over and over, as if it is some sort of GOTCHA moment that undermines the entire project.
This post was written by a human not AI.
إخلاء المسؤولية: تتضمن آراء أطراف خارجية. ليست نصيحةً مالية. يُمكن أن تحتوي على مُحتوى مُمول.اطلع على الشروط والأحكام.
