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but why is that a feasible hypothetical? Just 10x your revenue without increasing R&D cost? where's this 1 magic trick and why can't every company just use it?
by willsmith72 4mo ago
but why is that a feasible hypothetical?
Just 10x your revenue without increasing R&D cost? where's this 1 magic trick and why can't every company just use it?
- himata4113 4mo agoR&D cost is static, converting all subscription customers to api customers would yield 10x boost in revenue immediately so the demand is there, of course we will probably see demand expand more than that the question is if it's 10x (break even) or 20x (justifying trillion dollar evaluation.
- willsmith72 4mo ago> R&D cost is static since when? do you think their R&D in 2026 is the same as in 2022?
- himata4113 4mo ago22->26 was scaling up, right now they're at their peak R&D spending from today onwards for the next forseeable future until nvidia starts rolling out their new room-sized systems this will be the upper limit of what can be trained without diminishing returns to where you're just burning money for less than single digit gains. R&D grows because you have more money to spend, not because the R&D costs are increasing, therefore assuming current R&D costs are enough to keep up with competition (which they very likely are) R&D will remain static or (ideally) shrink. 95% or more of current R&D costs are compute, same as cost of revenue.
- willsmith72 4mo agoI doubt it lets see who's right. 2028 r&d is it higher or lower than 2026.
- j_w 4mo ago> converting all subscription customers to api customers would yield 10x boost in revenue immediately so the demand is there If OpenAI started charging all subscription users API pricing they would lose the majority of users. If they increase the price demand will plummet. They have no moat and there are competitors.