I find it interesting that according to these numbers, if they entirely stopped R&D and marketing, they would just about break even.

OpenAI is the definition of the difference between "Not-For-Profit" and "For not-profit".

https://isaiprofitable.com/

This misapprehends the business models of techno feudalism: you operate at a loss, running on VC money which is fairly endless. You offer a freeish service to grow your brand. Then when you list on the stock exchange you live off debts loaned to you by the bank on the basis that your company is worth millions or billions.

I have no doubt ChatGPT is, and that Sam Altman lives with no taxable income to speak of. He's just accumulating bank loans and paying them back with other bank loans secured by OpenAIs growing stock price and company valuation.

Money isn't real to the elite classes. Actually I believe Stalin and Churchill once stopped at a Cafe sometime after WW2, they realised after their meal no one travelling with them had money on them to pay. Because they didn't need money. It's accepted when you're at that level. Welfare Capitalism has existed for a very very long time.

Which column is infrastructure under? Things like power, DC rent, etc. Also what about depreciation assuming you try to shove all that shit (well the hardware anyway) into CapEx?

They're anti-profit lol

Ed's article where he released those numbers: https://www.wheresyoured.at/exclusive-openai-financials/

As real as any valuation. Which is to say, what investors are willing to pay for a piece of a company may not always have the most firm association with the reality of a company's current state. And, the market can stay irrational much longer than you expect.

Don't you worry about profits, let ME worry about blank!

Those techies might be able to create widgets but they're sure not competent businesspersons.

🤣

They'll be profitable when the training stops/slows down. But how much revenue they can generate is another question. This might be the reason behind the news of US gov thinking about banning Deepsek and other Chinese models. Open weights models kill the API billing bussiness model. Margins in that scenario probably wouldn't cover the massive investment.

You mean spending money as fast as possible to give everything away isn't bAsIc eCoNoMiCs?

bleeding edge is always expensive. probably an equivalent to Moore's law here. Smoores law for slop generation rates. need an umbrella extension for Firefox.