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by HyprMusic 627 days ago
"Futuresearch estimates that their API business actually has ~50% gross margins, and that most of the losses come from operating costs (R&D, etc) and their ChatGPT business, which gives basically unlimited usage for ~$20/month."

I would have assumed there's more profit in the subscriptions than the API. $20 is roughly 2 million output tokens a month through the API. Given the 50% margin they claim, each user would have to be generating 3-4 million output tokens a month for OpenAI to be at a loss. Is that likely? Seems like a lot of words to me.

1 comments

> Seems like a lot of words to me.

Pretty easy when you start having it search websites, documents, code references etc. Before caching, lots of people used up $20 in a day or 2.