[throw310822]

> OpenAI's spending mix shows why. The reported 2025 figures include $7.5 billion in cost of revenue, $19.18 billion in research and development, $5.73 billion in sales and marketing, and $1.57 billion in general and administrative expense

How the hell did they spend 5.7 billion in "sales and marketing"?

[chillfox]

Might be bribes and subsidies

[jofzar]

I wonder if that includes discounts/commissions for enterprise api bundling (ie cheaper for partner company XYZ if they include openai in their app)

[vkou]

Discounted contracts for big clients? Commissions? Both?

If this can be trusted, they are selling $1 for ~95 cents, and are spending $3 on R&D. This is... Not an unsustainable business model as long as the money keeps flowing.

[treis]

This is like Uber all over again.

OpenAI is selling $1 for $2 and spending ~$5 to make that happen. The question is if they get to selling $1 for $2 long enough to make they're investment back.

[vkou]

That's not the question. They can obviously raise prices ~5% and be in the green when it comes to operational spending.

The better question is what will that $38B of R&D spending get.

[eab-]

they're spending like 9 figures on a single marketing agency - this doesn't surprise me whatsoever

[CamperBob2]

Baksheesh to keep Trump off their backs?

[simonw]

Greg Brockman spent $25m on that out of his own money, it won't show up in the OpenAI figures. https://www.theverge.com/ai-artificial-intelligence/867947/o...

[trick-or-treat]

You say that like it's a bad thing but it's a show of respect. Why shouldn't Trump receive a tribute like any other local warlord?