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this post was submitted on 26 Oct 2024
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Is OpenAI profitable now?
Is OpenAI open still?
No and no.
Never really was
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.
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?
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.
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.
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/
To be fair, if I had an option to effectively invest in Google circa 2004 in 2024 I would toss some spare money at it, and that's basically what OpenAI is offering at this moment. They've established themselves, shown strong leadership and established strong relationships with major companies. They're a leader in a particular product segment and while they could falter and fail, there's enough momentum that they're more likely to be acquired than to actually fail, plus they're swimming in extremely uncharted waters so there's plenty of opportunities for them to both greatly improve ongoing operational efficiency and to create new products with new markets, much like where Google was in 2004
It's following the Amazon monopolization model.
Last time I heard, no. They are burning money to train new models.
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.
AI at least provides a clear product that can be a helpful workforce multiplier, whereas Bitcoin provided an unprotected alternative to traditional markets with none of the safeguards nor legal precedents of traditional markets, so it's only led to illegal activities piled upon illegal activities
Estimates from earlier this year are that they spend $2.35 for every $1 they make.
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.