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by _w1tm 683 days ago
> I don't really know anything about business, but something else I've wondered is this: if LLM scaling/progress really is exponential, and the juice is worth the squeeze, why is OpenAI investing significantly in everything that's not GPT-5? Wouldn't exponential growth imply that the opportunity cost of investing in something like Sora makes little sense?

You can spend 100% on the next generation or you can spend a small percentage to productize the previous generation to unlock revenue that can be spent on the next generation.

The latter will result in more investment into the next generation.