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But didn't they spend $9 billion? If I have a machine that magically turns $9 billion of investor money into $4 billion in revenue, I need to have a pretty awes
by mandevil 1y ago
But didn't they spend $9 billion? If I have a machine that magically turns $9 billion of investor money into $4 billion in revenue, I need to have a pretty awesome story for how in the future I am going to be making enormous piles of money to pay back that investment. If it looks like frontier models are going to be a commodity and it is not going to be winner-take-all... that's a lot harder story to tell.
- BosunoB 1y agoMost of that 9 billion was spent on training new models and on staff. If they stopped spending money on R&D, they would already be profitable.
- PeterStuer 1y agoBut only if everyone else stopped improving models as well. In this niche you can be irrellevant in months when your models drop behind.
- ezekg 1y agoSays literally every startup ever i.r.t. R&D/marketing/ad spend yet that's rarely reality.
- PUSH_AX 1y agoIn a space that moves this fast and is defined by research breakthroughs, they’d be profitable for about 5 minutes.
- ahtihn 1y ago> If they stopped spending money on R&D, they would already be profitable. The news that they did that would make them lose most of their revenue pretty fast.
- JumpCrisscross 1y ago> if they stopped spending money on R&D, they would already be profitable OpenAI has claimed this. But Altman is a pathological liar. There are lots of ways of disguising operating costs as capital costs or R&D.