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The big labs have 50+% margins on serving the models, the training is where they lose money. But every new model boosts OpenAI's revenue growth which is unhear
by serjester 1y ago
The big labs have 50+% margins on serving the models, the training is where they lose money. But every new model boosts OpenAI's revenue growth which is unheard of at their size (300+% YoY). Therefore it's completely reasonable to keep doubling down and making bigger bets.
Most people miss that they have almost a billion free users that are waiting to be monetized. Google makes 400B a year and it's crazy to think OpenAI can't achieve some percentage of that. Why would you slow down and let Google catch up for the sake of short term profitability.
- jjfoooo4 1y agoThe article claims otherwise: > In fact, even if you remove the cost of training models from OpenAI's 2024 revenues (provided by The Information), OpenAI would still have lost $2.2 billion fucking dollars.
- Incipient 1y agoYou also need to remove the research cost, and probably a bit of the people cost. The issue however is, can an AI company actually go "yep. We're done this is a good as it gets!"? I don't believe they can do that, so removing training cost is kind of a moot point.