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They can rebrand to "iOwe", which is short for "I owe tens of billions to investors who expect a massive return on all this GPU spend eventually."

by pavlov 1y ago

OtherShrezzing 1y ago
OpenAI are at $10bn ARR already, on about $60bn fundraising to date. Even if there's absolutely no advances in AI beyond its current point, they're fairly likely to have all investors break-even over 10-20 year time horizon. Their biggest risk is that there _are_ advances to AI, and that another company takes the lead from them.
- disgruntledphd2 1y ago
  > OpenAI are at $10bn ARR already, on about $60bn fundraising to date. Even if there's absolutely no advances in AI beyond its current point, they're fairly likely to have all investors break-even over 10-20 year time horizon. That's an incredibly low bar to hit, and I'm still sceptical that this will happen.
- olieidel 1y ago
  revenue != profit People tend to forget this outside of the Tech / VC / YC bubble. OpenAI is losing a brutal amount of money, possibly on every API request you make to them as they might be offering those at a loss (some sort of "platform play", as business dudes might call it, assuming they'll be able to lock in as many API consumers as possible before becoming profitable). The big question here will be what will happen next: Serving LLMs will likely become cheaper (as the past has shown). But will that lead to companies like OpenAI becoming profitable? Or will that lead to all platform providers lowering their prices again, offering them at a loss again? Or will that lead to everyone self-hosting their own LLMs because serving them has become cheaper not only financially, but computationally? That's the big question. In the meantime, OpenAI is bleeding money.
  - Tenoke 1y ago
    >OpenAI is losing a brutal amount of money, possibly on every API request you make to them as they might be offering those at a loss (some sort of "platform play", as business dudes might call it, assuming they'll be able to lock in as many API consumers as possible before becoming profitable). I believe if you take out training costs they aren't losing money on every call on its own, though depends on which model we are talking about. Do you have a source/estimate?

They can rebrand to "iOwe", which is short for "I owe tens of billions to investors who expect a massive return on all this GPU spend eventually."

by pavlov 1y ago

They can rebrand to "iOwe", which is short for "I owe tens of billions to investors who expect a massive return on all this GPU spend eventually."

OtherShrezzing 1y ago

OpenAI are at $10bn ARR already, on about $60bn fundraising to date. Even if there's absolutely no advances in AI beyond its current point, they're fairly likely to have all investors break-even over 10-20 year time horizon. Their biggest risk is that there _are_ advances to AI, and that another company takes the lead from them.

disgruntledphd2 1y ago
> OpenAI are at $10bn ARR already, on about $60bn fundraising to date. Even if there's absolutely no advances in AI beyond its current point, they're fairly likely to have all investors break-even over 10-20 year time horizon. That's an incredibly low bar to hit, and I'm still sceptical that this will happen.
olieidel 1y ago
revenue != profit People tend to forget this outside of the Tech / VC / YC bubble. OpenAI is losing a brutal amount of money, possibly on every API request you make to them as they might be offering those at a loss (some sort of "platform play", as business dudes might call it, assuming they'll be able to lock in as many API consumers as possible before becoming profitable). The big question here will be what will happen next: Serving LLMs will likely become cheaper (as the past has shown). But will that lead to companies like OpenAI becoming profitable? Or will that lead to all platform providers lowering their prices again, offering them at a loss again? Or will that lead to everyone self-hosting their own LLMs because serving them has become cheaper not only financially, but computationally? That's the big question. In the meantime, OpenAI is bleeding money.
- Tenoke 1y ago
  >OpenAI is losing a brutal amount of money, possibly on every API request you make to them as they might be offering those at a loss (some sort of "platform play", as business dudes might call it, assuming they'll be able to lock in as many API consumers as possible before becoming profitable). I believe if you take out training costs they aren't losing money on every call on its own, though depends on which model we are talking about. Do you have a source/estimate?