No, they are now charging by usage. They will either end up with boatloads of money while people still have ChatGPT integrated into their workflows, or they will end up with zero money as people either switch to other models or realize that AI was a shit idea all along.
Not the actual cost… they are still losing money even in their most expensive tiers. There is just no path to profitability with ANY of the current models, they simply cost more to run than the people they are supposedly trying to replace
FWIW the general consensus is that they are just about making a profit on selling it by the token (as opposed to the subscriptions which are massively subsidised) so long as you pretend that capital expenses and R&D aren’t real and at some point they could stop doing them in order to make profit.
That is very much not a given, with all the labs in a death march to not let the others get better than them and take their lunch, and open source only 9-18 months behind the closed models.
FWIW the general consensus is that they are just about making a profit
This is what the tech bros claim (which is obviously convenient so they can lure more suckers investors in); every outside pundit concludes otherwise
Check this article I received yesterday… in a nutshell, if a company returns less than 7% on investment, they would normally be liquidated by investors. To make it to 7%, AI companies would have to reach a revenue of $2 TRILLION per year (cumulative amongst the big AI players, which are like 5 total)
Last leaked financials from OpenAI showed $13 Billion revenue and a $21 billion loss
Also business customers are fleeing in droves because they’re forcing API only pricing for businesses and everyone is getting sticker shock at the costs.
You’ve got it all backwards. In an ideal capitalist world, the greedy software nonprofit foundations bleed the innovative corporations of their well-earned revenue.
PushButton@lemmy.world
on 18 Jun 12:19
nextcollapse
0.25c / compiled byte (pcb) without plan, or 1 million pcb for 5 hours access per day with the MaxProUltra frontier $20 / month.
And, can I sell you this chocolate bar while you are waiting for the compilation result? Only 0.99c!
Anyway, at least, it’s not going to be like Anthropic and Bun, it’s not like they gonna rewrite the thing in Rust.
threaded - newest
OpenAI is the one who needs donations
Wdym, they get donations all the time
They are bleeding money
No, they are now charging by usage. They will either end up with boatloads of money while people still have ChatGPT integrated into their workflows, or they will end up with zero money as people either switch to other models or realize that AI was a shit idea all along.
Not the actual cost… they are still losing money even in their most expensive tiers. There is just no path to profitability with ANY of the current models, they simply cost more to run than the people they are supposedly trying to replace
FWIW the general consensus is that they are just about making a profit on selling it by the token (as opposed to the subscriptions which are massively subsidised) so long as you pretend that capital expenses and R&D aren’t real and at some point they could stop doing them in order to make profit.
That is very much not a given, with all the labs in a death march to not let the others get better than them and take their lunch, and open source only 9-18 months behind the closed models.
This is what the tech bros claim (which is obviously convenient so they can lure more
suckersinvestors in); every outside pundit concludes otherwiseCheck this article I received yesterday… in a nutshell, if a company returns less than 7% on investment, they would normally be liquidated by investors. To make it to 7%, AI companies would have to reach a revenue of $2 TRILLION per year (cumulative amongst the big AI players, which are like 5 total)
Last leaked financials from OpenAI showed $13 Billion revenue and a $21 billion loss
Also business customers are fleeing in droves because they’re forcing API only pricing for businesses and everyone is getting sticker shock at the costs.
You’ve got it all backwards. In an ideal capitalist world, the greedy software nonprofit foundations bleed the innovative corporations of their well-earned revenue.
0.25c / compiled byte (pcb) without plan, or 1 million pcb for 5 hours access per day with the MaxProUltra frontier $20 / month.
And, can I sell you this chocolate bar while you are waiting for the compilation result? Only 0.99c!
Anyway, at least, it’s not going to be like Anthropic and Bun, it’s not like they gonna rewrite the thing in Rust.
Are they donating some of their debt? Is money even real?