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OpenAI doesn’t make any profit. So either it dies or prices go up. Not to mention the privacy aspect of your own machine and the freedom of choice which models
by croes 2y ago
OpenAI doesn’t make any profit. So either it dies or prices go up. Not to mention the privacy aspect of your own machine and the freedom of choice which models to run
- blackoil 2y ago> So either it dies or prices go up. Or efficiency gains in hardware and software catchup making current price point profitable.
- croes 2y agoTraining data gets mired in expensive and they need constant input otherwise the AI‘s knowledge is outdated
- com2kid 2y agoOpenAI built a 3 billion dollar business in less than 3 years of a commercial offering.
- croes 2y ago3 billion revenue and 5 billion loss doesn’t sound like a sustainable business model.
- VikingCoder 2y agoThe real question is what the next 3 years look like. If it's another 5 billion burned for 3 billion or less in revenue, that's one thing... But...
- croes 2y agoHow...
- menaerus 2y agoRecent report says there are 1M paying customers. At ~30USD for 12 months this is ~3.6B of revenue which kinda matches their reported figures. So to break even at their ~5B costs assuming that they need no further major investment in infrastructure they only need to increase the paying subscriptions from 1M to 2M. Since there are ~250M people who engaged with OpenAI free tier service 2x projection doesn't sound too surreal.
- com2kid 2y agoRumor has it they run queries at a profit, and most of the cost is in training and staff. If they is true their path to profitability isn't super rocky. Their path to achieving their current valuation may end up being trickier though!