AI startups burn subsidies instead of flywheels

The author argues that many venture-backed tech startups, particularly in the AI sector, rely on unsustainable capital subsidies rather than genuine business flywheels. By comparing unprofitable operations to perceived motion machines, the article contrasts startups that merely burn capital for scale with rare examples like Anthropic and Legora, where customer economics and compounding revenues successfully drive long-term growth. Open article →