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by emccue
313 days ago
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The entire US stock market is propped up by big tech companies spending massively on Data Centers and GPUs for AI. OpenAI is valued higher than Netflix. A company that can pull in single digit billions in revenue for hundreds of billions in expenses just doesn't make sense. > Most businesses are not using these systems t̶o̶ ̶d̶r̶a̶w̶ ̶a̶ ̶m̶a̶p̶.̶ FTFY And no - while it might be obvious from the outside in that it probably won't happen, the continued existence of the business is still predicated on conversion to a for-profit. They don't just need the amount of money they've already "raised", they need too keep getting more money forever. |
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As for “single-digit billions in revenue vs. hundreds of billions in expenses,” that’s just bad math. You’re conflating the total AI capex from hyperscalers with OpenAI’s own P&L. Yes, training is capital-intensive, but the marginal cost to serve (especially at scale) is much lower, and plenty of deployments are already profitable on an operating basis when you strip out R&D burn.
The funding structure question is fair, the for-profit conversion path matters but pretending the whole business is propped up solely by infinite investor charity is just wrong.