“The list of OpenAI’s latest investors reportedly includes huge names in tech, including Microsoft (which has already plowed more than $13 billion in since 2019), Thrive Capital, Nvidia, Cathie Wood’s Ark Investment Management and Japanese conglomerate SoftBank.
But you don’t need an MBA to see some red flags popping up with both OpenAI’s operations and the actual value of its technology.
One thing seems clear: The company is burning through far more cash than it’s bringing in, according to reporting from the New York Times.
OpenAI expects to do about $3.7 billion in sales this year. (That’s revenue largely from subscriptions to premium versions of ChatGPT and licensing its tech to third-party developers.)
But it can expect, conservatively, to burn through $5 billion in costs, according to the Times.
The path from $0 in revenue to nearly $4 billion was clearly the fastest in history,” Luria said
. “Nobody’s ever grown this fast at this scale, and they’re doing it again straight out of the gate with only the first few evolutions of their product set.”
OpenAI was founded in 2015 by CEO Sam Altman and 10 others as a nonprofit with a mission of “building safe and beneficial artificial general intelligence for the benefit of humanity.”
“If GPT-5 is not an order of magnitude better than GPT-4, their runway gets considerably shorter,” he told me.
“If we’ve gone from a model that’s as smart as a high school student to GPT-4o being as smart as a PhD students, the next version has to be getting us closer to a model that’s smarter than any human … for this to be worth the investment.”
https://www.cnn.com/2024/10/04/business/openai-chatgpt-investing-nightcap/index.html
Well…there’s that and the nuclear power that we don’t have but….
Well quickie paper profits predatory practices are ‘legal ‘….and…and…far right extremists libertarians tech bros would never be ransacking and dismantling America economy system..🤑
OpenAI, the company behind ChatGPT, just announced a $6.6 billion private funding round — the biggest in Silicon Valley history — that gives the young company a valuation of $157 billion, …..despite a decidedly unclear path to profitability..???.
byu/BikkaZz ineconomy
by BikkaZz
5 comments
Ah, yes, again with the “far right extremists libertarian tech bros” and their “predatory practices”!
How can one get a job working for them?
When has silicion valley ever cared about profitability? The whole area is just a black hole for investor money (four profitable companies doesn’t change my point)
Bubbles go pop
What would Elon’s $50,000,000 be worth when he initially funded this when it was a non profit?