51–60 of 278 posts
Earlier quoted context omitted.
It is subsidized by gov contracts. Everyone who has common sense immediately said the real money is Altman getting into the governments pants which is why he and Brockman lobby so hard. You take away those contracts and OpenAI is dead in the water.
SpaceX was said to be subsidized by gov contracts. Look at where that got it...
They are leading the way
> 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 $1.57 billion in general and administrative expense Does training of new models go into RnD or cost? And subscription plans' subsidies, are those cost or sales and marketing?
Given the enormous cost of training, would it be worth training new models then?
Literally, the largest scam ever made.
Companies losing that much money a year shouldn’t be allowed to IPO. It leaves the public markets holding the bag.
The stock market has companies from massive to tiny. Each investor has the right to choose whether or not to invest in any one company. Some might be best served by investing only in profitable blue chips. For others, investing in IPOs is appropriate.
Your ire might be better directed at index companies who change seasoning rules right before a big IPO forcing unsuspecting investors to invest in unsuitable companies. And kudos to indexers like S&P who do not change the rules.
Daily reminder that API pricing for both OpenAI and Anthropic is profitable today and that the cost of tokens for existing models falls sharply over time for a variety of reasons (unless we go into a far worse hardware inflationary environment than we are in today). The only thing any of them are losing money on is the 200$ a month plans, and you betchya that they're moving as many enterprises to per token pricing as…
> A person familiar with the matter said the large majority of that jump reflected a non-cash accounting charge linked to the company’s previous structure rather than its underlying operations.
> Before OpenAI’s switch late last year to become a public benefit corporation, investors in the company received convertible interest rights rather than conventional equity. Under US accounting rules, those interests were treated as liabilities and periodically revalued as the company’s valuation increased.
> As OpenAI’s worth rose, the increased value of those investor rights created a roughly $30bn charge, added the person. The charge is not expected to recur following the restructuring, they said.
> Stripping out the charge and other non-cash expenses, such as stock-based compensation of staff and computing credits from Microsoft, OpenAI’s losses were $8bn, according to the person.
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Sales and marketing have to be added to the COR, which makes COR slightly > Revenue.
That's only true once they become public. As a private entity they can calculate COR any reasonable way that their investors are okay with. (For tax purposes for most businesses it doesn't matter whether an expense is CORS or not.)
Revenue is higher than cost of revenue and revenue is growing faster than cost of revenue. We know OpenAI is forecasting $25-30B revenue for 2026. They will be very close to breaking even at those number. Given Anthropic has forecast more revenue than OpenAI and we know has spent less on R&D (cite their desperate scramble for compute capacity!) the rumours of them being profitable this year seem very credible.
Sales and marketing have to be added to the COR, which makes COR slightly > Revenue.
Earlier quoted context omitted.
Sales and marketing have to be added to the COR, which makes COR slightly > Revenue.
That's only true once they become public. As a private entity they can calculate COR any reasonable way that their investors are okay with. (For tax purposes for most businesses it doesn't matter whether an expense is CORS or not.)