[serjester]

The big labs have 50+% margins on serving the models, the training is where they lose money. But every new model boosts OpenAI's revenue growth which is unheard of at their size (300+% YoY). Therefore it's completely reasonable to keep doubling down and making bigger bets.

Most people miss that they have almost a billion free users that are waiting to be monetized. Google makes 400B a year and it's crazy to think OpenAI can't achieve some percentage of that. Why would you slow down and let Google catch up for the sake of short term profitability.

[jjfoooo4]

The article claims otherwise:

> In fact, even if you remove the cost of training models from OpenAI's 2024 revenues (provided by The Information), OpenAI would still have lost $2.2 billion fucking dollars.

[Incipient]

You also need to remove the research cost, and probably a bit of the people cost.

The issue however is, can an AI company actually go "yep. We're done this is a good as it gets!"?

I don't believe they can do that, so removing training cost is kind of a moot point.