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Everyone uses AI today for pretty much everything but we're in a bubble... Yeah sure. Big tech with all time revenue and profits, with growing demand for comput
by tinyhouse 11mo ago
Everyone uses AI today for pretty much everything but we're in a bubble... Yeah sure. Big tech with all time revenue and profits, with growing demand for compute quarter after quarter, but we're in a bubble ... Yeah sure.
OpenAI loses billions, that's true. That doesn't mean we're in a bubble. They also make billions. If their losses continue, they will keep losing more and more control. Microsoft already owns 30% of OpenAI. Big tech companies have too much cash on their hands and they cannot acquire their competitors, so instead they invest money in them. Either way, it's called consolidation.
- riffraff 11mo agoDoes openai make billions? Sam Altman said they have revenue, but didn't say how much, did he? We've heard people saying google is making profit on their Ai offering, but I don't think anyone else has their infrastructure with TPUs etc.
- rvnx 11mo agoOpenAI is now late in the game, way behind Claude and even Google Gemini (which used to be very bad, but now great, despite the few hallucinations), so they may collapse under their own weight if they cannot find new investors to feed the monster.
- tinyhouse 11mo agoThat's somehow true for enterprise. OpenAI are still leading the consumer side by a large margin over Claude. I'm talking about adoption, not the models. Once they can monetize beyond subscriptions (ads, shopping etc) they will be OK. Most likely once their ads business start growing, they will IPO.
- tinyhouse 11mo agoIt's well known that they are doing around $10B in ARR. GCP was losing money for many years but now it's a cash cow. AI is following the same trajectory. Not all companies will sustain it, but that doesn't mean it's a bubble, just that we will see consolidation.