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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

#331
post #205

Earlier quoted context omitted.

Unfortunately the chips themselves probably won’t physically last much longer than that under the workloads they are being put to. So, yes, they won’t be totally obsolete as technology in 2028, but they may still have to be replaced.

Do we actually know how they're degrading? Are there still Pascals out there? If not, is it because they actual broke or because of poor performance? I understand it's tempting to say near 100% workload for multiple years = fast degradation, but what are the actual stats? Are you talking specifically about the actual compute chip or the whole compute system -- I know there's a big difference now with the systems Nvid…

I watch a GPU repair guy and its interesting to see the different failure modes...

* memory IC failure

* power delivery component failure

* dead core

* cracked BGA solder joints on core

* damaged PCB due to sag

These issues are compounded by

* huge power consumption and heat output of core and memory, compared to system CPU/memory

* physical size of core leads to more potential for solder joint fracture due to thermal expansion/contraction

* everything needs to fit in PCIe card form factor

* memory and core not socketed, if one fails (or supporting circuitry on the PCB fails) then either expensive repair or the card becomes scrap

* some vendors have cards with design flaws which lead to early failure

* sometimes poor application of thermal paste/pads at factory (eg, only half of core making contact

* and, in my experience in aquiring 4-5 year old GPUs to build gaming PCs with (to sell), almost without fail the thermal paste has dried up and the card is thermal throttling

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

#332
post #270

Earlier quoted context omitted.

What is OpenAI's moat? There's plenty of competitors running their own models and tools. Sure, they have the ChatGPT name, but I don't see them massively out-competing the entire market unless the future model changes drastically improve over the 3->4->5 trajectory.

It's Sam. From what I understand he was the only one crazy enough to demand hundreds of GPUs for months to get ChatGPT going. Which at the time sounded crazy. So yeah Sam is the guy with the guts and vision to stay ahead.

Ignoring Sutskever much?

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

#333

Earlier quoted context omitted.

Yep, we are (unfortunately) still running on railroad infrastructure built a century ago. The amortization periods on that spending is ridiculously long. Effectively every single H100 in existence now will be e-waste in 5 years or less. Not exactly railroad infrastructure here, or even dark fiber.

How was your trip down the third Avenue El? Did your goods arrive via boxcar to 111 8th Ave?

At the rate they are throwing obstacles at the promised subway which they got rid of the 3rd Ave El for maybe his/her grandkids will finish the trip.

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

#334
post #231

I think people are massively underestimating the money they will come from ads in the future. They generated $4.3B in revenue without any advertising program to monetise their 700 million weekly active users, most of whom use the free product. Google earns essentially all of its revenue from ads, $264B in 2024. ChatGPT has more consumer trust than Google at this point, and numerous ways of inserting sponsored results…

I think this is directionally right but to nitpick…Google has way more trust than OpenAI right now and it’s not close. Acceleration is felt, not velocity.

Yeah, I agree with you.

Between Android, Chrome, YouTube, Gmail (including mx.google.com), Docs/Drive, Meet/Chat, and Google Search, claiming that Google "isn't more trusted" is just ludicrous. People may not be happy they have to trust Alphabet. But they certainly do.

And even when they insist they're Stallman, their friends do, their family does, their coworkers do, the businesses they interact with do, the schools they send their children to do.

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

#335
post #231

I think people are massively underestimating the money they will come from ads in the future. They generated $4.3B in revenue without any advertising program to monetise their 700 million weekly active users, most of whom use the free product. Google earns essentially all of its revenue from ads, $264B in 2024. ChatGPT has more consumer trust than Google at this point, and numerous ways of inserting sponsored results…

> They generated $4.3B in revenue without any advertising program To be clear, they bought/aired a Superbowl advert. That is a pretty expensive. You might argue that "Superbowl advert" versus 4B+ in revenue is inconsequential, but you cannot say there is no advertising. Also, their press release said: > $2 billion spent on sales and marketing Vague. Is this advertising? Eh, not sure, but that is a big chunk of money.

I think they mean OpenAI showing ads from other companies to users, not buying ads themselves.

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

#336
post #231

I think people are massively underestimating the money they will come from ads in the future. They generated $4.3B in revenue without any advertising program to monetise their 700 million weekly active users, most of whom use the free product. Google earns essentially all of its revenue from ads, $264B in 2024. ChatGPT has more consumer trust than Google at this point, and numerous ways of inserting sponsored results…

The moment they start mixing ads into responses Ill stop using them. Open models are good enough, its just more convenient to use chatgpt right now, but that can change.

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

#337
post #324
post #231

I think people are massively underestimating the money they will come from ads in the future. They generated $4.3B in revenue without any advertising program to monetise their 700 million weekly active users, most of whom use the free product. Google earns essentially all of its revenue from ads, $264B in 2024. ChatGPT has more consumer trust than Google at this point, and numerous ways of inserting sponsored results…

Google has google.com, youtube, chrome, android, gmail, google map etc ... I don't see OpenAI having a product close to that.

Google is older and many of the products you describe were acquisitions (inorganic growth).

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

#338
post #336
post #231

I think people are massively underestimating the money they will come from ads in the future. They generated $4.3B in revenue without any advertising program to monetise their 700 million weekly active users, most of whom use the free product. Google earns essentially all of its revenue from ads, $264B in 2024. ChatGPT has more consumer trust than Google at this point, and numerous ways of inserting sponsored results…

The moment they start mixing ads into responses Ill stop using them. Open models are good enough, its just more convenient to use chatgpt right now, but that can change.

I agree, but the question is whether or not normal people will stop using them.

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

#339
post #336

Earlier quoted context omitted.

The moment they start mixing ads into responses Ill stop using them. Open models are good enough, its just more convenient to use chatgpt right now, but that can change.

I agree, but the question is whether or not normal people will stop using them.

I think the empirical answer is no. Look at how many ads there are in everything and people still use it.

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

#340
I'm old and have been on the Internet since the Prodigy days in 90. Open Ai has the best start of any company I can remember. Even better than Google back in 98 when they were developing their algo and giving free non-monetized search results to Yahoo.

These guys have had my $20 bucks a month since Plus was live, they will indeed be more than fine.

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