TechTakes @awful.systems David Gerard @awful.systems 4 wk. ago

OpenAI could lose $5 billion in 2024

pivot-to-ai.com OpenAI could lose $5 billion in 2024

OpenAI is hemorrhaging cash. It could lose about $5 billion this year and may have to raise more funding. [The Information, paywalled; Data Center Dynamics] The Information report is based on OpenA…

36 comments

Good, that shitty OpenAI needs to be drained dry and go into nonexistence ASAP.
- Who do you think they are draining ?
  
  do you think the answer is “normal people with normal lives”?
  
  it really ain’t.
Yann and co. just dropped llama 3.1. Now there's an open source model on par with OAI and Anthropic, so who the hell is going to pay these nutjobs for access to their apis when people can get roughly the same quality for free without the risk of having to give your data to a 3rd party?

These chuckle fucks are cooked.
- For "free" except you need thousands of dollars upfront for hardware and a full hardware/software stack you need to maintain.
  
  This is like saying azure is cooked because you can rack mount your own PC
  
  OpenAI is losing money on every user and has no moat other than subsidies from VCs, but that's ok because they'll make it up in volume.
  
  That's mostly true. But if you have a GPU to play video games on a PC running Linux, you can easily use Ollama and run llama 3 with 7 billion parameters locally without any real overhead.
  
  Dumbass detected
The big men educated in Finance would probably scoff at my ignorant remark, but anyways here goes: isn’t this the modus operandi of these massively swollen tech "startups"? Spotify for example has been operating at a loss for what, 15 years?

Something like:

screw people over

get funding

bleed money

???

get more funding
- I'd expect the current interest rates make it a less viable strategy.
  
  Also, money is fake but I'd expect there's a limit to just how many billions you can burn before you can't get away with it.
- They need to be producing value even if it's not "taxable profit" according to generally accepted accounting principles.
  
  For Spotify, spending venture capital is fine as long as you secure more users, ready to ne milked later.
  
  For OpenAI, if they burn through $5b in venture capital, their product needs to be ready to make $5b more than it was previously.
Unless they get that infinite money cheat code from Robinhood securities
- Dear CHATGPT how do we get our company more money?
  
  "That's a great question. To get more money simply bring up the console and enter 'rosebud!;! ;! ;! ;!'"
all of the others next please
Oh no!
- Anyway.
Another classic Samai photo
- it's the best samalt photo
Dear Santa, please let OpenAI double its net profits.
These fucking assholes.

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