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OpenAI completes deal that values company at $157B

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Re: OpenAI completes deal that values company at $157B

#401

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We heard for years that Uber was the company that's most likely to be the first to develop self-driving cars. Until they weren't. You can't just trust what the CEOs are hyping.

I think Waymo was always ahead in terms of self-driving, and still is today.

Uber's autonomous division had more hype around it, and company's evaluation was largely based on the idea of replacing human drivers "very very soon". Now the bulk of their revenue comes from food delivery.

Re: OpenAI completes deal that values company at $157B

#402
post #344

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I've been following them for years, and every year everyone says they're not worth it. It started with "AI progress is fake." "AI will never beat human creativity." "AI can't code anything past 15k tokens." "AI will always be too expensive." "AI will never sound like a human." "AI can't even understand humor." And now we're at "AI is only like this because they're stealing copyright." "If everyone uses AI, it will ca…

Yet you're ignoring that competitors, have done a terrific job at catching up in extremely small time frames. Hell, even Nvidia 2 weeks ago released their own LLM model which is competitive with the best commercial ones. AI is a commodity, eventually where money will be made (interacting with the software and user, from Excel to your OS like Apple Intelligence) it won't be much relevant which model you use, average J…

To be a commodity, there has to be a constrained supply. So-called AI is just software and the replicable nature of software means it cannot be a commodity. I'd agree on your other point that the competitors have done a great job of catching up to a point where the valuation makes little sense given the limited moat.

Re: OpenAI completes deal that values company at $157B

#403

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While it was an affordable vehicle, saying that it was practical is an overstatement. Charging networks were abysmal and actually still are for non-Tesla compatible vehicles. If you had experience using EVgo and similar small networks you probably wouldn't sound as confident.

People back then didn't use charging networks; they charged at home (or work).

Since I am technically "people", I can assure you that there indeed existed non-Tesla charging stations in 2014. I was living in a medium size city in an apartment. Since your original comment is specifically about cities, I would like to point out that cities are often associated with apartment buildings, lack of individual garages, etc. Even today saying that EV owners in cities mostly rely on charging at home or at work does not seem valid.

Re: OpenAI completes deal that values company at $157B

#404

I for one can never get over the fact that Mira Murati was not laughed out of the room when she said -- with a straight face -- that GPT4 had high school level intelligence and the non-existent GPT5 will have PHD-level intelligence [1]. IMO -- this is not a serious company with serious people building an important long-lived product. This is a group of snake oil salesmen that are in the middle of the greatest grift o…

> this is not a serious company with serious people building an important long-lived product. This is a group of snake oil salesmen But that’s obviously not a fair description either, because they have the world-leading product in an intensely competitive field that does stuff nobody would have thought possible five years ago. The marketing is obviously massive hyperbole bordering the ridiculous, but the idea that th…

The whole industry is full of snake oil salesmen. Do you really think this [2] is not a hype bubble waiting to be turned into a tell-all docuseries?

They have produced something impactful sure, but I don't think their product is a tenth as valuable or "intelligent" as they are claiming it to be. There are too many domain-specific tools that are far superior to whatever pseudo-intelligence you get from chatgpt... what proof do we have that any industry has found material value from this chatbot?

[2] https://x.com/deedydas/status/1841670760705949746

Re: OpenAI completes deal that values company at $157B

#405

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That's the thing, nothing points to a world with a single winner in AI models. I get what you are saying, but not sure OpenAI can survive the burn unless they build an unmatchable AGI. And that's pure speculation at this point.

I mean, someone needs to rise to the top, unless society as a whole just says "There's no value here." and frankly there's too much real value right now for that. So someone's surviving, at least at the service level. Maybe they just end up building off of open source models, but I can't see how the best brains in the business don't find a way to get paid to make these models. Am I missing something?

I am not saying that LLMs don't provide value, just that this value might not be captured exclusively by OpenAI in the future. If the idea is that OpenAI will have an unmatched competitive advantage over everyone else in this area, then that has already been proven to be wrong. The rest is speculation about AGI, the genius or Altman, etc.

Re: OpenAI completes deal that values company at $157B

#406

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> I wouldn't even be surprised if they were losing money on paying ChatGPT users on inference compute alone I'd be surprised it that was the case. How many tokens is the average user going through? I'd be surprised if the avg user even hit a 1m tokens much less 20m.

o1 is about $2-$4 per message over the API. I'm probably costing OpenAI less than 24hrs after my subscription renewal each month. Voice mode is around $0.25 per minute via API. I don't use that much, but 3 minutes ago per day would already exceed the cost of a ChatGPT Plus subscription by quite a bit.

> o1 is about $2-$4 per message over the API

I’m not sure I understand this, sorry. I see GPT-4o at $3.75 per million input tokens and $10 per million output tokens, on OpenAI’s pricing page.

That’s expensive and I can’t see how they can run Copilot on the standard API pricing. But, it makes a message (one interaction?) lower cost than $4 to me.

How many tokens are in a typical message for you?

Re: OpenAI completes deal that values company at $157B

#407

If I were an investor, I'd be pretty concerned with such a high valuation after the o1 release. It's great, no question, but in my usage so far it's a modest step up from 4o, much smaller than the 3->4 jump. Real world exponential growth is exponential until it's logistic, and this sort of feels like entering that phase of the LLM paradigm. Talking to friends who are very successful, knowledgeable AI researchers in i…

That's exactly what it is and what has been done. It's just an iterative model with a planning step. In my tests you can get nearly the same results with GPT4 by first asking for a plan, and then asking for each step of the plan within the same context window.

Re: OpenAI completes deal that values company at $157B

#408

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That’s demoware.

That's like saying Youtube isn't free because there's a subscription...

It’s like saying just because there’s a free offering the product isn’t free. Anyone who has ever built a shareware or demoware product understand the free offering is a funnel to the paid offering and doesn’t exist as an independent part but as an advertisement for the paid product.

Re: OpenAI completes deal that values company at $157B

#409
post #254

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Obviously, that's my point. We can do the math. GPT-4o can emit about 70 tokens a second. API pricing is $10/million for output tokens and $2.5/million for input tokens. Assuming a workload where inputs tokens are 10:1 with output tokens, and that I can generate continuous load (constantly generating tokens). I'll end up paying $210/day in API fees, or $76,650 in a year. Let's assume the hardware required to service…

70 somethings per second, is slow. So that means it does take a very significant amount of resources, considering it's running on the same or better hardware. To sustain 70 things per second for thousands of users, it gets expensive really quickly.

My point is that at current API pricing the users are paying enough to cover inference costs.

Re: OpenAI completes deal that values company at $157B

#410
post #254

Earlier quoted context omitted.

Obviously, that's my point. We can do the math. GPT-4o can emit about 70 tokens a second. API pricing is $10/million for output tokens and $2.5/million for input tokens. Assuming a workload where inputs tokens are 10:1 with output tokens, and that I can generate continuous load (constantly generating tokens). I'll end up paying $210/day in API fees, or $76,650 in a year. Let's assume the hardware required to service…

You're missing the fact that requests are batched. It's 70 tokens per second for you, but also for 10s-100s of other paying customers at the same time.

All these efficiencies just increase OpenAI's margin on inference. Of course it's not "one cluster per customer" and of course a customer can't saturate a cluster by themselves, my illustration was only to point out that the economics work.
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