Sort of. There's a class of startups that's not meant to be profitable, except maybe by happy accident. Many (most?) tech startups are like that now. After all, the investors don't care about creating profitable companies - they just want to make money, which they're positioned to do in many ways. One of them is to help create profitable companies. Another is to help grow companies to be sold to other companies and/or to the public for maximum value, giving the investors back a large multiple of initial investments, after which... they don't care anymore.
It's like with modern husbandry: you can make money selling milk, eggs and meat by sustainably raising animals living comfortable lives, but you can make more money by sticking them in cages, pumping them up with antibiotics and optimized fodder, to maximize production rates and minimize costs. The two approaches are inherently incompatible with each other. And I dare to say, modern startup ecosystem kind of entered the era of "factory farming" some time ago now.
Aiming to build a company to be bought by Microsoft or whoever is still aiming to be profitable, the product is simply the company’s assets (IP, customer list, etc).
It’s unsustainable in that the profit is a one time event, but that doesn’t mean you’re not to turn cash into something worth more than what you spent and then sell that thing.
It's like with modern husbandry: you can make money selling milk, eggs and meat by sustainably raising animals living comfortable lives, but you can make more money by sticking them in cages, pumping them up with antibiotics and optimized fodder, to maximize production rates and minimize costs. The two approaches are inherently incompatible with each other. And I dare to say, modern startup ecosystem kind of entered the era of "factory farming" some time ago now.