[YeGoblynQueenne]

>> You could, if you wanted, use this as an argument that OpenAI is on shaky financial ground: The pressure to come out with the next generation of models and stay in the lead is so intense that models are retired before the company has actually turned a profit on them. Certainly, if I were thinking about investing in OpenAI, I would want to think about when that is expected to turn around.

Yeah but that's the whole point. If LLMs need to keep getting better before they can turn a profit they need to keep scaling. If they need to keep scaling then the LLM companies need to keep spending more to scale them. If they need to keep spending more then they need to be making more money.

Are they? If they're not, then they're toast.

Btw, this is true even if training gets cheaper over time. Cheaper training means more training not less money. Jevon's Paradox and all that.