Leaked financial docs show OpenAI is losing billions of dollars a year
3h 55m ago by lemmy.today/u/sanitation in technology from arstechnica.com
Who did not know this already?
The real issue is that nobody seems to care... I mean, the biggest IPO in history just took place, valuing SpaceX (which was in reality a tiny bit of SpaceX, entirely composed of Grok) at almost 2 TRILLION dollars after they showed a 5 BILLION loss in the last quarter
Reality is for suckers I guess
It's not news that they are losing money, but it is news that they are losing tremendously more money than they were previously losing.
It does weaken the argument that scaling up is the path to profitablity, but of course they'll just claim more money and scaling is the way to go. If the market remains manic they can get away with it.
IKR? Was it supposed to be a secret? The game plan is to bleed out the competition, make businesses dependent on AI, and then raise prices sky high.
This kind of feels like a "Duh." moment. We all know.
All aboard the hype train 🚂. Next stop hypeville. Final destination... Who gives a shit.
Losing BILLIONS a Year? That sounds like TRILLION Dollar Status!
-Wall Street!
"Actually, this is good news, as the amount of money lost shows how much money they have gotten. This means they are very good at getting money."
Hey Nasdaq, how much can I get for my compulsive gambler uncle?
Probably a lot if you short him.
I expect that many companies will realize that an LLM is a tool that can help with certain tasks, but cannot fully replace most workers because there is a ton of context in people's jobs that cannot be condensed into language. Similarly, many companies are now realizing with token-based pricing that frontier LLMs are not cost effective in many applications. You shouldn't have a natural gas fired data center in Tennessee running a model to proofread your emails. You can have a local model do so MUCH more cheaply. This will leave the speculative data center companies holding the bag on a lot of hardware and capacity that is not actually needed.
Billions of dollars they earned? Did they earn those?
I always thank the LLM and ask if it wants a cup of tea. Is this my fault?