Wait, since when it had not been? Or are you telling me that vastly the fastest growing platform in history with multiple payment gates (subscriptions, pay per token, licensing etc.) was not profitable for some reason?
Worse than Bitcoin miners, AI seems to have the wholethroated support of capital (rather than a single faction), who see it as the next big form of automation
Not sure if you are joking but… it does not appear to be making anywhere near the amount of money that has been invested in it.
It costs a stupendous amount of money to develop the models, to train them, to rent out or just buy the hardware needed to do this, to pay for the electrical power to do this.
It isn’t even close to making a profit. They are bleeding billions per year with no obvious path to breaking even, let alone profiting enough to justify their enormous valuation. It’s very much a bubble and I look forward to the day it pops.
Now that I think of it, yeah, it makes absolute sense. It’s not a stable income OpenAI is based on, but rather the endless wagons of money from hyped up sponsors. Very much unsustainable.
Or are you telling me that vastly the fastest growing platform in history with multiple payment gates (subscriptions, pay per token, licensing etc.) was not profitable
Are you not aware that 99 times out of 100 if you see a tech company rapidly growing it’s completely unprofitable and not even attempting to be profitable yet? It’s called blitzscaling and is pretty clearly what openai is attempting. Like if you see a tech company quickly growing you should be assuming it’s unprofitable until proven otherwise not the opposite lol.
A lot can happen between now and then that would cause their expenses to grow even more, for example if they need to start licensing the content they use for training.
On the other hand some breakthrough in either hardware or software could make AI models significantly cheaper to run and/or train. The current cost in silicon is insane and just screams that there’s efficiencies to be found. As always, in a gold rush, sell pickaxes
Is OpenAI profitable now?
No and AI almost never will be. However, investor money keeps coming, so it doesn’t matter.
Wait, since when it had not been? Or are you telling me that vastly the fastest growing platform in history with multiple payment gates (subscriptions, pay per token, licensing etc.) was not profitable for some reason?
They’ve never been profitable and current estimates say they won’t be profitable until at least 2029: https://www.businessinsider.com/openai-profit-funding-ai-microsoft-chatgpt-revenue-2024-10
They should ask ChatGPT hoe to make OpenAI profitable. I’m sure the answer will make them take off.
Running those datacenters is extremely expensive.
The cost is to the whole world, because they consume enormous amounts of energy and produce essentially nothing. Like bitcoin miners.
Worse than Bitcoin miners, AI seems to have the wholethroated support of capital (rather than a single faction), who see it as the next big form of automation
Last time I heard no, they are burning money for training new models.
Not sure if you are joking but… it does not appear to be making anywhere near the amount of money that has been invested in it.
It costs a stupendous amount of money to develop the models, to train them, to rent out or just buy the hardware needed to do this, to pay for the electrical power to do this.
It isn’t even close to making a profit. They are bleeding billions per year with no obvious path to breaking even, let alone profiting enough to justify their enormous valuation. It’s very much a bubble and I look forward to the day it pops.
Edit: if you want a lengthy read on the subject https://www.wheresyoured.at/oai-business/
Not joking, I’m just underinformed
Now that I think of it, yeah, it makes absolute sense. It’s not a stable income OpenAI is based on, but rather the endless wagons of money from hyped up sponsors. Very much unsustainable.
For the record, that describes almost every big software company in the last 30 years.
Estimates from earlier this year are that they spend $2.35 for every $1 they make.
It’s following the Amazon monopolization model.
Are you not aware that 99 times out of 100 if you see a tech company rapidly growing it’s completely unprofitable and not even attempting to be profitable yet? It’s called blitzscaling and is pretty clearly what openai is attempting. Like if you see a tech company quickly growing you should be assuming it’s unprofitable until proven otherwise not the opposite lol.
Is OpenAI open still?
Never really was
No and no.
A recent report estimates that they won’t be profitable until 2029: https://www.businessinsider.com/openai-profit-funding-ai-microsoft-chatgpt-revenue-2024-10
A lot can happen between now and then that would cause their expenses to grow even more, for example if they need to start licensing the content they use for training.
On the other hand some breakthrough in either hardware or software could make AI models significantly cheaper to run and/or train. The current cost in silicon is insane and just screams that there’s efficiencies to be found. As always, in a gold rush, sell pickaxes
Definitely a possibility! It’ll be interesting to see what happens.