So I'm trying to reconcile a couple of things:
1. AI companies like OpenAI and Anthropic are not currently profitable and are burning significant capital (https://www.reddit.com/r/ValueInvesting/comments/1onethv/openai\_at\_300\_billion\_valuation\_while\_burning\_5/).
2. I know of a major tech company that has made AI usage an explicit requirement in employee performance reviews, essentially mandating its adoption across the organization.
While I understand that markets can remain irrational longer than expected, I'm puzzled by this aggressive all-in approach to AI adoption by companies. Is there an expectation that costs will decrease significantly? Are companies betting that compute costs, inference costs, or operational expenses will drop enough to make AI economically viable at scale?