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by BosunoB 405 days ago
Most of that 9 billion was spent on training new models and on staff. If they stopped spending money on R&D, they would already be profitable.
5 comments

> if they stopped spending money on R&D, they would already be profitable

OpenAI has claimed this. But Altman is a pathological liar. There are lots of ways of disguising operating costs as capital costs or R&D.

In a space that moves this fast and is defined by research breakthroughs, they’d be profitable for about 5 minutes.
Says literally every startup ever i.r.t. R&D/marketing/ad spend yet that's rarely reality.
> If they stopped spending money on R&D, they would already be profitable.

The news that they did that would make them lose most of their revenue pretty fast.

But only if everyone else stopped improving models as well.

In this niche you can be irrellevant in months when your models drop behind.