This week’s big headline is: “Silicon Valley is buzzing about this new idea: AI compute as compensation“. Uh huh. [Business Insider] The idea is that instead of getting paid dollars to work for an …
Ok, so correct me if I’m wrong, but usually the reason you do this is because the cost to produce this benefit is lower than the price you usually sell it for, so you can inflate the claimed value of the benefit, both to appeal to candidates and to write it off on your taxes. But at the moment tokens are usually sold way below cost (i.e. the companies are not profitable), so why the fuck would any company do this? Are they this short on cash now?
Ok, so correct me if I’m wrong, but usually the reason you do this is because the cost to produce this benefit is lower than the price you usually sell it for, so you can inflate the claimed value of the benefit, both to appeal to candidates and to write it off on your taxes. But at the moment tokens are usually sold way below cost (i.e. the companies are not profitable), so why the fuck would any company do this? Are they this short on cash now?
They set money on fire at incredible rates, they are definitely seeking any cash they can.
Also investors HATE payroll expenses. Loathe.