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The cost of the number of humans required to exclusively curate youtube would render the platform unprofitable in very short order.

Then maybe they go out of business. Capitalism doesn't guarantee that a firm's business plan will work forever.

As long as the advertisers don’t complain, their AI-based business model is perfectly viable.

On youtube, both the creators and the consumers are the product. The advertisers are the customers.

Well yeah, the point is that YouTube would not engage in a business plan that they believe would put them out of business.