It's sensible only when you know you can flip a switch and turn to profit mode. This is true in the oil drilling example, but not at all guaranteed for tech companies.

So much of VC funding in the last decade has assumed (not only for enterprise software, but everything), that if you grow by some metric enough, one day you can flip a switch and *poof* profits. This same logic pervaded the "new economy" thinking right before the dotcom bust.

With the cost of many going up more and more of these large, unprofitable tech companies are going to have to start proving that they really can flip that switch and remain at the scale they are. I think a concerning amount will find they can't.