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> “As long as we’re on this very distinct curve of the model getting better and better, I think the rational thing to do is to just be willing to run the loss f
by thoughtpeddler 1y ago
> “As long as we’re on this very distinct curve of the model getting better and better, I think the rational thing to do is to just be willing to run the loss for quite a while,” Altman [said]
It’s not clear he can keep playing this card, as the GPT-5 announcement day this week marked a point where the reality is clear that the gap between frontier lab foundation models has shrank dramatically. OpenAI no longer has a significant lead, and more importantly, the tech itself might be starting to mature.
- belter 1y agoMost relevant is this: "OpenAI’s annual recurring revenue is now on track to pass $20 billion this year, but the company is still losing money."
- thoughtpeddler 1y agoTheoretically they can just flip a switch and double or triple the price of their paid products, and/or start charging a substantial portion of free users, and no longer lose money. We don't know all the details.
- belter 1y agoOn one hand, you say we don’t know the details, yet at the same time you argue they can turn a profit whenever they want? They don’t have proprietary hardware. They use the same servers available to everyone else. I did the calculations, and for them to turn a profit, their subscription price would have to be far higher than anyone would be willing to pay.