"The Riff" with Byrne Hobart and Erik Torenberg cover image

E41: Meta’s Open Source Strategy, Amazon’s Culture Drift, and What’s Going on With Character.AI

"The Riff" with Byrne Hobart and Erik Torenberg

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Invest for Tomorrow, Harvest for Life

Amazon's strategy of focusing on long-term growth rather than short-term profits exemplifies the importance of cohort economics in developing a sustainable business model. By investing heavily in user acquisition and fulfillment early on, despite initial losses, companies can create a customer base that increases spending over time. This approach challenges conventional thinking and suggests that prioritizing future profitability through strategic reinvestment can ultimately lead to significant success.

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