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https://www.theinformation.com/articles/why-openai-could-lose-5-billion-this-year https://www.theinformation.com/articles/why-openai-could-los... If you take t
by Bjorkbat 2y ago
https://www.theinformation.com/articles/why-openai-could-lose-5-billion-this-year https://www.theinformation.com/articles/why-openai-could-los...
If you take this at face-value, they probably aren't profitable (to the tune of a $5 billion loss). I don't like idle speculation, but having actually read this their analysis seems pretty sound. Their numbers on training costs and hosting actually came from an anonymous insider. Impossible to say how reliable this anonymous insider is, but planting false, exaggerated numbers to outwit competitors seems a bit too much like a hare-brained scheme, hence why I opt to go with the numbers. If anything, companies tend to downplay costs when lying.
The one thing that caught me as a little bit crazy was spending $1.5 billion on employees. They have ~1500 employees, so that's $1 million per head. That seems insane, but then again, AI researchers are a valuable commodity these days.
Even if the cost of employees was $0, you'd still be looking at estimated losses in the billions.