Well part of acquisition costs are giving out 3.5 for free hoping to convert people to paid ChatGPT. It's possible they're even subsidizing the paid ChatGPT for

Well part of acquisition costs are giving out 3.5 for free hoping to convert people to paid ChatGPT. It's possible they're even subsidizing the paid ChatGPT for additional data (they believe it helps them improve their product and build a moat) and to convert people to Enterprise. For all we know, all their current revenue is considered acquisition costs for Enterprise use, where they might think the real money and profits are. I understand they probably don't have any solid idea on LTV yet. The point is that looking at quarterly numbers doesn't tell us if any VC backed company is lighting cash on fire or making smart investments.