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How do you explain open source software then? Why is Linux still being developed?

Direct or indirect support from various corporations generally.

So it turns out that you can actually make money if you offer source code for free.

Epic Games earn billions with their Unreal Engine and Fortnite and they aren't afraid of pirates.

They earn a lot from Fortnite sure.

Unreal engine is not technically open source, I’m aware that their revenue from it is that significant compared to Fortnite and they make money by taking a share of revenue from it’s users.

Not sure how all of that is relevant for open source though . IBM/Red Hat, Google or even Oracle would be much better examples

It might be tied to scenarios where the engineers producing said piece of software expected no compensation whatsoever (more or less).

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