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.
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.
I expect that many companies will realize that an LLM is a tool that can help with certain tasks, but cannot fully replace most workers because there is a ton of context in people’s jobs that cannot be condensed into language. Similarly, many companies are now realizing with token-based pricing that frontier LLMs are not cost effective in many applications. You shouldn’t have a natural gas fired data center in Tennessee running a model to proofread your emails. You can have a local model do so MUCH more cheaply. This will leave the speculative data center companies holding the bag on a lot of hardware and capacity that is not actually needed.
Who did not know this already?
The real issue is that nobody seems to care… I mean, the biggest IPO in history just took place, valuing SpaceX (which was in reality a tiny bit of SpaceX, entirely composed of Grok) at almost 2 TRILLION dollars after they showed a 5 BILLION loss in the last quarter
Reality is for suckers I guess
IKR? Was it supposed to be a secret? The game plan is to bleed out the competition, make businesses dependent on AI, and then raise prices sky high.
It’s not news that they are losing money, but it is news that they are losing tremendously more money than they were previously losing.
It does weaken the argument that scaling up is the path to profitablity, but of course they’ll just claim more money and scaling is the way to go. If the market remains manic they can get away with it.
This kind of feels like a “Duh.” moment. We all know.
Losing BILLIONS a Year? That sounds like TRILLION Dollar Status!
-Wall Street!
“Actually, this is good news, as the amount of money lost shows how much money they have gotten. This means they are very good at getting money.”
Hey Nasdaq, how much can I get for my compulsive gambler uncle?
Probably a lot if you short him.
All aboard the hype train 🚂. Next stop hypeville. Final destination… Who gives a shit.
I always thank the LLM and ask if it wants a cup of tea. Is this my fault?
Billions of dollars they earned? Did they earn those?
