Week 14 Biggest Startup Funding Rounds in Africa and the Middle East, Led by ScaleOps, as AI and Cybersecurity Drew the Biggest Checks - Techloy
Week 14 Biggest Startup Funding Rounds in Africa and the Middle East, Led by ScaleOps, as AI and Cybersecurity Drew the Biggest Checks Techloy
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AI subscriptions are subsidized. Here's what happens when that stops.
Right now, every time you send a query to ChatGPT, Claude, or Gemini, the company behind it is losing money on you. Not breaking even. Losing money. OpenAI spent $1.69 for every dollar of revenue it generated in 2025 and is projecting $25 billion in cash burn this year. Even its $200/month Pro plan - the most expensive consumer AI subscription on the market - loses money on heavy users. Anthropic's gross margins were negative 94% in 2024, and its CEO has said publicly that if growth slips from 10x to 5x per year, the company goes bankrupt. These aren't scrappy startups - OpenAI just closed $122 billion at an $852 billion valuation - but even at that scale, the math is tight. We've all seen subsidized tech before. The question that keeps coming up is what happens when this subsidy stops. He
VCs are covering expenses like rent for young college dropouts founding AI startups; Antler: average AI unicorn founder age fell from 40 in 2020 to 29 in 2024 (Kate Clark/Wall Street Journal)
Kate Clark / Wall Street Journal : VCs are covering expenses like rent for young college dropouts founding AI startups; Antler: average AI unicorn founder age fell from 40 in 2020 to 29 in 2024 Venture capitalists are stepping in to cover expenses like rent while dropouts from Harvard to Stanford chase their startup dreams
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