With a ~40 billion usd hole (netloss) Openai keeps it´s word by staying a nonprofit company 🤣
Idk the source of that data but OMG look at anthropic, 6.5b revenue but recently “evaluated” ~1 trillion USD. Is that for real?
Yeah, all speculative.
“To the moon” you say? Take my money!
Ahahahahaha Facebook has dumped roughly the same amount of money into AI as Microsoft, but makes 1/10th the revenue. Pure gold
That page makes it look even better than it is. It’s almost halfway to profitable, according to that. About 2/3 of that revenue is from Nvidia though, which is just selling the shovels for the gold rush speculation. It’s not “AI profit” as if AI is producing something. It’s just sales caused by people hoping it’ll produce something in the future.
That’s why you can click on “Hide infrastructure”, it then shows only $135B in revenue (for $1.2T spent).
A very useful metric here would be a $/day to see if it’s slowing down or speeding up.
OpenAI is the definition of the difference between “Not-For-Profit” and “For not-profit”.
I find it interesting that according to these numbers, if they entirely stopped R&D and marketing, they would just about break even.
That’s what they want you to think. This chart is especially egregious with calling it “cost of revenue” as if the other costs weren’t just as necessary for their revenue. If they stop R&D in 2027, they won’t have any revenue by 2028 because their models will be outdated and nobody will want to use them. R&D is simply cost of doing business.
This misapprehends the business models of techno feudalism: you operate at a loss, running on VC money which is fairly endless. You offer a freeish service to grow your brand. Then when you list on the stock exchange you live off debts loaned to you by the bank on the basis that your company is worth millions or billions.
I have no doubt ChatGPT is, and that Sam Altman lives with no taxable income to speak of. He’s just accumulating bank loans and paying them back with other bank loans secured by OpenAIs growing stock price and company valuation.
Money isn’t real to the elite classes. Actually I believe Stalin and Churchill once stopped at a Cafe sometime after WW2, they realised after their meal no one travelling with them had money on them to pay. Because they didn’t need money. It’s accepted when you’re at that level. Welfare Capitalism has existed for a very very long time.
Which column is infrastructure under? Things like power, DC rent, etc. Also what about depreciation assuming you try to shove all that shit (well the hardware anyway) into CapEx?
Which column is infrastructure under?
I don’t think they have any of that. They rent computation capacity, which should partially be under cost of revenue and partially under R&D.
They’re anti-profit lol
Ed’s article where he released those numbers: https://www.wheresyoured.at/exclusive-openai-financials/
As real as any valuation. Which is to say, what investors are willing to pay for a piece of a company may not always have the most firm association with the reality of a company’s current state. And, the market can stay irrational much longer than you expect.
What is “the cost of revenue”? Tax? Electricity supply?
Accounting equivalent of “Cost of Goods Sold” but for software and tech companies its usually a service so “cost of revenue” is the term used
Don’t you worry about profits, let ME worry about blank!
🤣
Those techies might be able to create widgets but they’re sure not competent businesspersons.
They’ll be profitable when the training stops/slows down. But how much revenue they can generate is another question. This might be the reason behind the news of US gov thinking about banning Deepsek and other Chinese models. Open weights models kill the API billing bussiness model. Margins in that scenario probably wouldn’t cover the massive investment.
That’s the problem, you can’t stop training your model. New and useful information is created every day. This is simply not an economically viable product.
deleted by creator
Competitors have the same problem. We’ll see what happens once subsidies run out.
deleted by creator
