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The $13.5B net loss doesn't mean they are in trouble, it's a lot of accounting losses. Actual cash burn in H1 2025 was $2.5B. With ~$17.5B on hand (based on las
by zurfer 1y ago
The $13.5B net loss doesn't mean they are in trouble, it's a lot of accounting losses. Actual cash burn in H1 2025 was $2.5B. With ~$17.5B on hand (based on last funding), that’s about 3.5 years of runway at current pace.
- fred_is_fred 1y agoDeprecation only gets worse for them as they build-out, not better.
- dwaltrip 1y agoIt gets worse until we hit the ceiling on what current tech is capable of. Then they can stop burning cash on enormous training runs and have a shot at becoming profitable.
- FridgeSeal 1y agoThey survive through inertia and “new model novelty”. The minute they lose that (not just them, the whole sector), they’re toast. I suspect they know this too, hence Sam-Altman admitting it’s a bubble so that he can try to ride it down without blowing up.
- ceroxylon 1y agoThis makes sense, but what happens when they stop burning cash on training runs and any of their competitors releases a better model that raises the ceiling? They will have to train one that is comparable (or better), or the word will spread and users will move to the better model.