If these numbers are right, it's actually not that bad. Cut r&d costs and they are mostly profitable.
If they cut down on R&D they will be no better than the open source models you can run at cost yourself.
OpenAI Losses Increased Nearly 8X in 2025, with Spending Hitting $34B
161–170 of 425 posts
Re: OpenAI Losses Increased Nearly 8X in 2025, with Spending Hitting $34B
#162If these numbers are right, it's actually not that bad. Cut r&d costs and they are mostly profitable.
Cut down on the one thing they need to keep themselves relevant in this space?
Watch them flare out like a star… but there is lots of questions re the the return on RnD. Is it worth spending another order of magnitude for only marginal frontier gains?
Re: OpenAI Losses Increased Nearly 8X in 2025, with Spending Hitting $34B
#163Suspicious lack of pro-AI comments here
You mean the lack of pro-Anthropic/OpenAI comments, who are gambling tokens at their casinos and won't admit that they are very expensive. This is because people here are quietly realizing that they fell for the "token-maxxing" marketing drive which was complete BS for you to gamble more money on tokens as the big AI labs gave heavily subsidized token prices they cannot afford. Jevon's paradox does not exist at those…
>This is because people here are quietly realizing that they fell for the "token-maxxing" marketing drive which was complete BS for you to gamble more money on tokens as the big AI labs gave heavily subsidized token prices they cannot afford.
Good callout. All these "trends" in AI were definitely from the AI companies themselves in order to push the sales of more tokens. What's after agent orchestration? Whatever it is, it will involve a big spend.
Re: OpenAI Losses Increased Nearly 8X in 2025, with Spending Hitting $34B
#164The scale of the numbers is exceptional, but the shape is pretty typical for a high-growth, scale startup with a big TAM where a winner can take most. And compute, supply constrained as it is for the foreseeable future, is absolutely a moat. I come away from this thinking OpenAI is actually in very good shape given that revenue is growing fast enough that break-even has a clear path without doing anything draconian.
Re: OpenAI Losses Increased Nearly 8X in 2025, with Spending Hitting $34B
#165If these numbers are right, it's actually not that bad. Cut r&d costs and they are mostly profitable.
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Re: OpenAI Losses Increased Nearly 8X in 2025, with Spending Hitting $34B
#166Suspicious lack of pro-AI comments here
their PR department is probably still trying to figure out what narrative the bots should follow for this one.
Re: OpenAI Losses Increased Nearly 8X in 2025, with Spending Hitting $34B
#167If these numbers are right, it's actually not that bad. Cut r&d costs and they are mostly profitable.
While you cant discount 100% R&D they are close, agreed
Re: OpenAI Losses Increased Nearly 8X in 2025, with Spending Hitting $34B
#168I'm really curious about something: how far will you go to support AI? Clearly they'll need to monetize things further, would you still use [whatever AI you are paying for] if the price was doubled? Tripled? Where would you stop and would you stop using AI altogether or would you look at competitors?
I don’t and won’t support AI. For a while I paid 200€ a month and would have been happy to pay up to maybe 600€. However I don’t want to participate anymore in using such an anti-human technology and industry
Re: OpenAI Losses Increased Nearly 8X in 2025, with Spending Hitting $34B
#169If these numbers are right, it's actually not that bad. Cut r&d costs and they are mostly profitable.
So you’re saying if you cut all the cost centers a company would only have profit centers? If you ignore all the losses you’ll only have profits?
It's more like once you figure out how to make a really good lamp then producing lots of lamps will be profitable. But the lamps are currently suboptimal so we'll be in the red until that time.
Re: OpenAI Losses Increased Nearly 8X in 2025, with Spending Hitting $34B
#170If these numbers are right, it's actually not that bad. Cut r&d costs and they are mostly profitable.
Yes if you ignore all the reasons why they’re horribly unprofitable, they’re profitable.
R&D costs are hurting profit side and while you can cut that one just becomes irrelevant overnight in this space if you do, hence the problem.