[throw-qqqqq]

It sounds like you think OpenAI is a profitable business? As far as I understand, it’s not.

OpenAI is projected to generate $12-14 billion in yearly revenue in 2025 (annualized from a single month), but expect to lose around 8 billion USD, implying the margins are negative.

OpenAI has raised a total of ~$60 billion.

I think they need to show investors a huge and growing cashflow to keep the show going.

[joe_the_user]

OpenAI has a subscription revenue stream that's more than sufficient to keep current basic operations going. It is losing money because most of that money is spent on research, more and more GPUs, very expensive people and other capital expenditure.

Of course, they can't just retreat to selling their basic services since some other company would train and produce a marginally better model.

So it's a paradoxical situation. They're moving in contradictory directions - both to become a thing so valuable they'd only need to sell subscriptions and towards a mote if they don't reach that "AGI" thing. No reason being flexible would displease their shareholders but there are many other questions to answer here (who gets AGI raptures, who gets the Skynet/Terminator treatment, who decides, etc).

[rhetocj23]

The valuation of OAI would be peanuts if it stopped reinvesting too. Which will destroy the value of equity and therefore employees certainly wont be happy.

Im not really sure where Altman is going. As time goes on, it seems the walls are closing in and he's just throwing all he can to keep the hype alive.

You cant escape fundamentals forever, I dont care who you are.

[janalsncm]

Right, so given that R&D is not optional lest they fall behind, they need to find another revenue stream.