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> Within a year of launching ChatGPT, we reached $1B in revenue. By the end of 2024 we were generating $1B per quarter. We are now generating $2B in revenue per
by sixtyj 7mo ago
> Within a year of launching ChatGPT, we reached $1B in revenue. By the end of 2024 we were generating $1B per quarter. We are now generating $2B in revenue per month.
They raised $122B.
122 / 12*2 = 5 years to get your money back (I simplify, I know revenue <> profit)
They are so big that almost no one can afford to acquire them. It is similar as someone would like to acquire MSFT or AAPL.
WCGW?
- mrcwinn 7mo agoCorrection: no one can afford to acquire them.
- robertozoia 6mo agoRevenue is on metric. Another important metric is gross margin. OpenAI's gross margin is estimated at 33%[0]. They also have to pay Microsoft 20% of revenue. So, for each $1 of revenue: Revenue $1.00 COGS (inference) (0.67) Microsoft (0.20) Gross margin $0.13 That $0.13 must cover "everything else": R&D, payroll, etc., and ideally leave some profit on the table. The problem for OpenAI (and other pure AI companies) is that inference is not like software that sells at marginal cost (build once, sell everywhere), but each token costs money. Inference gets cheaper, but newer models require more computing power and consume more tokens. So the gross margin does not improve over time. Break-even in the future won't come from just growing API usage and subscriber base. [0] https://sacra.com/c/openai/ https://sacra.com/c/openai/