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OpenAI May Be in Major Trouble Financially (futurism.com)

submitted 3 days ago by [email protected] to c/[email protected]

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[–] [email protected] 26 points 2 days ago (1 children)

That doesn't seem to bother OpenAI insiders, though, who hope to be bringing in $125 billion in annual revenue by 2029.

To hit that kind of revenue they would need to convince 5% of the world's population to spend $20 a month on a chatbot. Netflix has barely managed to reach about two thirds of that subscriber number, and they offer a whole-ass streaming service. Obviously OpenAI can supplement consumer sales with enterprise and API access, but so far they're doing a very bad job of that.

But even if they did hit those numbers, they'd still be running at a loss. By their own admission their product isn't even profitable at $200 a month. More customers won't make you more money when everything you sell is a loss leader.

[–] [email protected] 10 points 2 days ago (1 children)

There probably are people who consider $200 a month for an AI to be worthwhile, or their employer does, but I doubt there are enough to keep multiple AI companies running.

[–] [email protected] 5 points 2 days ago

At that insane rate, it would be much more cost effective to just buy really good hardware and run open weight models locally.