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Amazon was not profitable for many years, yet they are one of the most valuable companies in the world. Why? Because they kept growing. What OpenAI is doing is
by zurfer 2y ago
Amazon was not profitable for many years, yet they are one of the most valuable companies in the world.
Why? Because they kept growing.
What OpenAI is doing is "sustainable" if they keep growing like that.
From summer 2023 to summer 2024 they 6x their revenue to 3.4B USD.
If they 4x next year and 3x the year after, they would make 40B in revenue.
- mrbungie 2y agoThat's a common misconception: They reinvested their money back into Amazon, which when justified with a sound strategy to investors makes sense. It was kept by design at an almost 0 profit, but non profitable != operating at a loss (vs OAI, that has been predicted to loss up to 5B this year).
- j_maffe 2y agoYou're assuming exponential growth based on early growth rates. Those rates are extremely unlikely.