Neumann played into the tech industry's love of a bullish founder and big claims, and wasIts second-quarter earnings Tuesday reveal a harrowing section on"liquidity." At the end of the month, it had, $205 million of which is cash while the rest is in the form of"first lien notes" – essentially debt secured with collateral – of which $175 million was drawn upon last month.
It's a striking state of affairs for a company that convinced of the world's most powerful investors into thinking it was more than 10 times the value of rival company IWG at the time. Artificial intelligence companies make their money differently, mostly by charging recurring software subscription fees. It's a tried-and-tested and lucrative business model. But equally, investors would be wise to learn from WeWork and look under the hood of any AI firm claiming it will fundamentally alter any market.racing to talk about their ChatGPT integrations on earnings callsBut the delivery of these promises is far from certain.