Hate on openai all you want but 4xing your revenue over a year is no small feat.
Not as bad as I thought honestly. Looks like they’re making a profit on inference, it’s just training the models is costing them a shit ton in R&D.
If we hit a plateau and training new models isn’t worth it and they scale back there R&D the business could be profitable. Not enough to justify there absurd evaluation, but not a money pit that some people in this thread would have you believe.
It’s not a small feat, but they also 4x’d their expenses, which made them lose significantly more. Long term as you mentioned, if they could entirely drop their R&D, which they’ll never get to $0, but if they did, they’d still be almost -$2 billion in profit. Business modes can change to help accommodate that at that point theoretically though.
I just don’t see them ever getting there. How many years can you lose $20 billion and stay solvent? They’ll raise prices like everyone, but they may lose customers offsetting the gains made, or even if they get more, operating costs will go up too. With all of the DCs being built, I also don’t see R&D going down anytime soon either.
Hate on openai all you want but 4xing your revenue over a year is no small feat.
Not as bad as I thought honestly. Looks like they’re making a profit on inference, it’s just training the models is costing them a shit ton in R&D.
If we hit a plateau and training new models isn’t worth it and they scale back there R&D the business could be profitable. Not enough to justify there absurd evaluation, but not a money pit that some people in this thread would have you believe.
It is a small feat when you’re already loosing money.
It’s not a small feat, but they also 4x’d their expenses, which made them lose significantly more. Long term as you mentioned, if they could entirely drop their R&D, which they’ll never get to $0, but if they did, they’d still be almost -$2 billion in profit. Business modes can change to help accommodate that at that point theoretically though.
I just don’t see them ever getting there. How many years can you lose $20 billion and stay solvent? They’ll raise prices like everyone, but they may lose customers offsetting the gains made, or even if they get more, operating costs will go up too. With all of the DCs being built, I also don’t see R&D going down anytime soon either.