"rapidly evolving industry" That has always been wildly unprofitable…
As were a lot of big companies, like Amazon, until they weren’t.
OpenAI misses revenue, is the AI bubble bursting?
31–38 of 38 posts
Re: OpenAI misses revenue, is the AI bubble bursting?
#32Is this article really worth sharing? A speculative headline with no numbers, no estimates, 0 data. Feels like click bait and HN is submitting to the bait.
The billions being thrown at openai and anthropic are speculative
Re: OpenAI misses revenue, is the AI bubble bursting?
#33Journos love bashing AI, knowing they will be replaced by it within months to a couple of years.
OK sam
Re: OpenAI misses revenue, is the AI bubble bursting?
#34This CNBC article is based on a Wall Street Journal article. https://archive.ph/mTiIs OpenAI Misses Key Revenue, User Targets in High-Stakes Sprint Toward IPO By Berber Jin The company’s CFO and board have questioned the wisdom of massive data-center spending in the face of slowing growth
Ah that explains handing models over to AWS to run in their data centers
Yeah I bet you’re right. Data centers are not a hobby.
Re: OpenAI misses revenue, is the AI bubble bursting?
#35These companies will not be able to keep making large improvements to their models as time goes on. You gotta remember to not be holding the bag when the music stops.
Gustafson would hard disagree with you, while Amdahl shares your pessimism.
I think Gustafson has better receipts... His main argument is that software will update to take advantage of new parallelism in hardware. And that's definitely been the case.
AI has ridiculous levels exploitable parallelism. It'll scale up and out.
Re: OpenAI misses revenue, is the AI bubble bursting?
#36Is this article really worth sharing? A speculative headline with no numbers, no estimates, 0 data. Feels like click bait and HN is submitting to the bait.
Oh you want numbers? Here’s a number: 3.5 That’s the number of years until we achieve AGI according to Sam Altman: https://techresearchonline.com/news/sam-altman-predicts-agi-... This company’s current valuation is entirely speculative. So if you’re going to criticize the article, maybe direct some of that skepticism towards the company in question.
Isn’t it general knowledge AGI has been achieved ?
Re: OpenAI misses revenue, is the AI bubble bursting?
#37OpenAI had worse models (GPT 5.2 and 5.4) at that time. But now the tables have turned. Would Anthropic face a similar situation since Opus 4.7 falls below expectations?
Claude and Claude Code are still quite useful even when considering the recent degradations, so I don't think corporate users will leave easily especially considering that they're subsidized by their companies. I think the most likely scenario is that Anthropic will remove the Max ($100 / $200) subscriptions (which were the sweet spot for most users) and opt for token-based prices instead, which will make the average…
Anthropic has since found and fixed the perf. problem: https://www.anthropic.com/engineering/april-23-postmortem
Re: OpenAI misses revenue, is the AI bubble bursting?
#38Earlier quoted context omitted.
Claude and Claude Code are still quite useful even when considering the recent degradations, so I don't think corporate users will leave easily especially considering that they're subsidized by their companies. I think the most likely scenario is that Anthropic will remove the Max ($100 / $200) subscriptions (which were the sweet spot for most users) and opt for token-based prices instead, which will make the average…
Increasing cost will only make people embrace competitor or open source models.
What if the competitors are also expensive? If one of OpenAI and Anthropic raises prices, the other one will follow suit (since both have the same profitability problem).
Open source models currently look good on paper, but the flagship models are still quite huge and cannot be run efficiently on consumer hardware, thus having the same inference hosting cost issues (I'm assuming OpenAI and Anthropic has done a shit ton of optimizations already on their servers.) The main breakthrough needed is plainly cheaper and more efficient hardware (such as TPUs or Huawei Ascends), and how to scale infrastructure quickly without losing money.