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It’s an entirely different skillset to create technology $x than it is to create a successful ad network. Yahoo is the canonical example. It has been one of t
by raw_anon_1111 1y ago
It’s an entirely different skillset to create technology $x than it is to create a successful ad network. Yahoo is the canonical example. It has been one of the most trafficked websites in the world through most of its history and still wasn’t able to successfully sell ads after the dot com bust.
ChatGPT’s revenue means nothing if reports are to be believed that it loses money on each paying customer on just inference. It’s definitely not enough to support its training costs.
Also, I think I remember estimates that it costs 10x as much to serve a ChatGPT result than it does for Google to serve a search result. Not to mention that Google uses its own hardware including TPUs.
- aurareturn 1y agoChatGPT’s revenue means nothing if reports are to be believed that it loses money on each paying customer on just inference. It’s definitely not enough to support its training costs. Sam Altman: We're very profitable on inference. https://simonwillison.net/2025/Aug/17/sam-altman/#:~:text=Subscribe,2025%20at%2012:53%20am https://simonwillison.net/2025/Aug/17/sam-altman/#:~:text=Su... Independent analysis: Inference is very profitable. https://martinalderson.com/posts/are-openai-and-anthropic-really-losing-money-on-inference/ https://martinalderson.com/posts/are-openai-and-anthropic-re... https://www.snellman.net/blog/archive/2025-06-02-llms-are-cheap/ https://www.snellman.net/blog/archive/2025-06-02-llms-are-ch...
- raw_anon_1111 1y agoFair enough, I haven’t updated my assumptions in quite a while.