31–40 of 148 posts
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Bankruptcy? How much longer can they sell a dollar for 50c?
How long did AMZN do it for?
So if you're asking about time, then amazon stopped a lot faster. OpenAI is 40 quarters old.
If you are asking about money, then amazon... also stopped a lot faster. OpenAI is losing money comparable to amazon's lifetime losses every quarter.
It's all speculation. Reality is Fable is x2 price increase against previous. GPT5.5 is x2 price increase against previous. And after the last week reset, codex is hungry for your sub allowance. Everybody can see that the massive raises are not matching the revenue, at all. It's a surprising headline. Yes it does make sense to cut the price to gain market share, but it also make sense to keep it at a sustainable leve…
Not sure about GPT but it seems plausible they've also been increasing the model size with recent releases. (Progressively training a bigger model and easing into a profitable price range for that model scale?)
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I don’t think Amazon did that…?
Amazon would absolutely take a loss on certain products in order to dominate the category, squeeze out competitors and then bring the price back up. It's one of the reasons they're so dominant in general now. Also one of the reasons why Amazon Basics has basically everything that exists and they're usually at or near the top of their respective categories -- third-party sellers simply can't compete.
OpenAI and Anthropic's moat is filling with cement faster than they can dig.
The frontier labs commonly trade spots at the top of the benchmarks with each new model release. The timing of these price cut discussions says to me OpenAI has no imminent release that will be edging out Mythos/Fable. If so the question becomes when can they do so, or is this possibly a turning point where Anthropic keeps the crown to themselves for the foreseeable future.
Think about where any of them will be in 20 years
On device AI?
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It seems that OpenAI lacks a clear target audience, they try to be everything for everyone. Anthropic is targeting professionals / enterprise users. I don’t fully understand why OpenAI lacks this focus, as clearly identifying a target market is one of the first things you do with a business strategy. But instead they just seem to throw stuff against the wall and see what sticks.
They have the consumer market but want the enterprise market, because it's a lot more lucrative, so they're probably going to just keep chasing that even though there's no signs they'll stop losing to Anthropic. They don't need to do that much to keep the consumer market because of momentum.
How does OpenAI plan to be profitable?
It's all speculation. Reality is Fable is x2 price increase against previous. GPT5.5 is x2 price increase against previous. And after the last week reset, codex is hungry for your sub allowance. Everybody can see that the massive raises are not matching the revenue, at all. It's a surprising headline. Yes it does make sense to cut the price to gain market share, but it also make sense to keep it at a sustainable leve…
Fable is twice the size of Opus from what I gathered. So I'm not sure if 2x price translates to 2x profits as well. Not sure about GPT but it seems plausible they've also been increasing the model size with recent releases. (Progressively training a bigger model and easing into a profitable price range for that model scale?)
Earlier quoted context omitted.
They have the consumer market but want the enterprise market, because it's a lot more lucrative, so they're probably going to just keep chasing that even though there's no signs they'll stop losing to Anthropic. They don't need to do that much to keep the consumer market because of momentum.
Questionable whether the enterprise market really is the most lucrative. The biggest of big tech all have significant revenue from the consumer market. Compare Apple, Google, Meta, to IBM, Salesforce, ServiceNow.