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OpenAI's H1 2025: $4.3B in income, $13.5B in loss

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Re: OpenAI's H1 2025: $4.3B in income, $13.5B in loss

#221

Post by epolanski »

simonw wrote: post #58

I think the most interesting numbers in this piece (ignoring the stock compensation part) are: $4.3 billion in revenue - presumably from ChatGPT customers and API fees $6.7 billion spent on R&D $2 billion on sales and marketing - anyone got any idea what this is? I don't remember seeing many ads for ChatGPT but clearly I've not been paying attention in the right places. Open question for me: where does the cost of ru…

I've seen some OpenAI ads on Italian tv and they made no sense to me, they tried hard to be apple like, but realistically nobody knew what they were about.

Re: OpenAI's H1 2025: $4.3B in income, $13.5B in loss

#222

Post by yieldcrv »

onlyrealcuzzo wrote: post #108
yieldcrv wrote: post #93

Earlier quoted context omitted.

private secondary markets are pretty liquid for momentum tech companies, there is an entire cottage industry of people making trusts to circumvent any transfer restrictions employees are very liquid if they want to be, or wait a year for the next 10x in valuation

Oh, yes, next year OpenAI will be worth $5T, sure

I mean… if they do the same low float accounting that got them to the $500bn print, why not

it’s just selling a few shares for any higher share price

Re: OpenAI's H1 2025: $4.3B in income, $13.5B in loss

#223

Post by epolanski »

munk-a wrote: post #27
darth_avocado wrote: post #20

Earlier quoted context omitted.

They have to compete with Zuckerberg throwing $100M comps to poach people. I think $830k per person is nothing in comparison.

Both numbers are entirely ludicrous - highly skilled people are certainly quite valuable. But it's insane that these companies aren't just training up more internally. The 50x developer is a pervasive myth in our industry and it's one that needs to be put to rest.

50x devs are not a myth.

In any case the talent is very scarce in AI/ML, the one able to push through good ideas so prices are going to be high for years.

Re: OpenAI's H1 2025: $4.3B in income, $13.5B in loss

#224

Post by epolanski »

darth_avocado wrote: post #170
hadlock wrote: post #82

Earlier quoted context omitted.

You have to out-pay to keep your talent from walking out the door. California does not have non-competes. With the number of AI startups in SF you don't need to relocate or even change your bus route in most cases.

This. The main reason OpenAI throws money at top level folks is because they can quickly replicate what they have at OpenAI elsewhere. Imagine you have a top level researcher who’s developed some techniques over multiple years that the competition doesn’t have. The same engineer can take them to another company and bring parity within months. And that’s on top of the progress slowing down within your company. I can’t…

This is also a good reminder of how there's no moat in AI.

I'm glad if US and Chinese investors will bleed trillions on AI, just to find out few of your seniors can leave and found their own company and are at your level minus some months of progress.

Re: OpenAI's H1 2025: $4.3B in income, $13.5B in loss

#226

Post by ares623 »

whizzter wrote: post #130
cs702 wrote: post #45

Correction: 4.3B in revenues . Other than Nvidia and the cloud providers (AWS, Azure, GCP, Oracle, etc.), no one is earning a profit with AI, so far. Nvidia and the cloud providers will do well only if capital spending on AI, per year, remains at current rates.

I really hope NVidia doesn't get too comfortable with the AI incomes, would be sad to see all progress in gaming disappear.

Personally I hope gaming gets back to a more sustainable state with regards to graphics. (i.e. lower production costs because you don’t need 1000 employees to build out a realistic world)

Re: OpenAI's H1 2025: $4.3B in income, $13.5B in loss

#227

Post by rester324 »

epolanski wrote: post #223
munk-a wrote: post #27

Earlier quoted context omitted.

Both numbers are entirely ludicrous - highly skilled people are certainly quite valuable. But it's insane that these companies aren't just training up more internally. The 50x developer is a pervasive myth in our industry and it's one that needs to be put to rest.

50x devs are not a myth. In any case the talent is very scarce in AI/ML, the one able to push through good ideas so prices are going to be high for years.

I think there is no evidence of any type of 50x devs. There is not even proof of 10x devs. So if there is no evidence, why is that not a myth?

Re: OpenAI's H1 2025: $4.3B in income, $13.5B in loss

#228

Post by Spooky23 »

rchaud wrote: post #211
Spooky23 wrote: post #196

Earlier quoted context omitted.

Unlike 1875, we have Saudi and other tillion/billionaires willing commit almost any amount to own the future of business.

Except they behave less like shrewd investors and more like bandwagon jumpers looking to buy influence or get rich quick. Crypto, Twitter, ridesharing, office sharing and now AI. None of these have been the future of business. Business looks a lot like what it has throughout history. Building physical transport infrastructure, trade links, improving agricultural and manufacturing productivity and investing in militar…

Agreed - I don’t think they are particularly brilliant as a category. Hereditary kleptocracy has limits.

But… I don’t think there’s an example in modern history of the this much capital moving around based on whim.

The “bet on red” mentality has produced some odd leaders with absolute authority in their domain. One of the most influential figures on the US government claims to believe that he is saving society from the antichrist. Another thinks he’s the protagonist in a sci-fi novel.

We have the madness of monarchy with modern weapons and power. Yikes.

Re: OpenAI's H1 2025: $4.3B in income, $13.5B in loss

#229

Post by actuallyalys »

simonw wrote: post #58

I think the most interesting numbers in this piece (ignoring the stock compensation part) are: $4.3 billion in revenue - presumably from ChatGPT customers and API fees $6.7 billion spent on R&D $2 billion on sales and marketing - anyone got any idea what this is? I don't remember seeing many ads for ChatGPT but clearly I've not been paying attention in the right places. Open question for me: where does the cost of ru…

I’ve seen some on electronic street-level signs in Atlanta when I visited. So there is some genuine advertising.

Re: OpenAI's H1 2025: $4.3B in income, $13.5B in loss

#230

Post by ares623 »

SeanAnderson wrote: post #110

I dunno. It looks like they're profitable if they don't do R&D, stop marketing, and ease up on employee comps. That's not the worst place to be. Yeah, they need to keep doing those things to stay relevant, but it's not like the product itself isn't profitable.

So if they stop doing what got them there they’ll be profitable?

If I stop buying grocery and paying electricity bills I can finish up my mortgage in no time.

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