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Uh, they are selling compute below cost. They are losing money on every subscription.
by Taek 2y ago
Uh, they are selling compute below cost. They are losing money on every subscription.
- snackernews 2y agoIt’s the complete lack of profitability all the way down, from the deep Azure discounts, to OpenAI’s training and inference costing more than it brings in, to all the OpenAI API wrapper apps losing money on OpenAI subscriptions to get some AI into their product. There’s nowhere in the chain that gets anywhere close to zero marginal costs. In any other industry, a business claiming success for selling $100 bills for $50 would be laughed out of the room.