Exploring YouTube's Business Model and AI Investment Concerns

YouTube has heavily invested in fostering a healthy relationship with its creators through a 50/50 revenue split with ads and addressing community concerns. This approach, borrowed from the Silicon Valley tradition, has enabled YouTubers to operate like mini production studios, creating a small business economy. However, venture capitalists have been disappointed as YouTube's space does not offer huge margins or growth potential. The discussion shifts to AI investment concerns, suggesting that AI models producing mediocre work may lead to competing on price rather than quality, impacting profit margins. The debate questions whether society should invest trillions in AI advancements which currently yield unremarkable results, drawing a parallel to early skepticism about the internet's potential despite optimism for improvement in the future.