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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

#481

Post by lelanthran »

nojs wrote: 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 is tightly integrated vertically. It is going to be very hard to dislodge that.

Right now Gemini gives a youtube link in every response. That means they have already monetised their product using ads.

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

#482

Post by ares623 »

nojs wrote: 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…

> ChatGPT has more consumer trust than Google at this point

Gee I wonder why?

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

#483

Post by oskarkk »

hxorr wrote: post #331
chermi wrote: post #205

Earlier quoted context omitted.

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 therma…

These failures of consumer GPUs may be not applicable to datacenter GPUs, as the datacenter ones are used differently, in a controlled environment, have completely different PCBs, different cooling, different power delivery, and are designed for reliability under constant max load.

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

#484

Post by viking123 »

rajaman0 wrote: post #371
asa400 wrote: post #362

Earlier quoted context omitted.

What is OpenAI's competitive moat? There's no product stickiness here. What prevents people from just using Google, who can build AI stuff into their existing massive search/ads/video/email/browser infrastructure? Normal, non-technical users can't tell the difference between these models at all, so their usage numbers are highly dependent on marketing. Google has massive distribution with world-wide brands that peopl…

Consumer brand quality is so massively underrated by tech people. ChatGPT has a phenomenal brand. That's worth 100x more than "product stickiness". They have 700 million weekly users and growing much faster than Google. I think your points on Google being well positioned are apt for capitalization reasons, but only one company has consumer mindshare on "AI" and its the one with "ai" in its name.

Google has to be shitting its pants. No one knows what is "gemini", probably some stupid nerd thing. Normies knows ChatGPT and that is what matters.

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

#485

Post by wiseowise »

asa400 wrote: post #362
nojs wrote: 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…

What is OpenAI's competitive moat? There's no product stickiness here. What prevents people from just using Google, who can build AI stuff into their existing massive search/ads/video/email/browser infrastructure? Normal, non-technical users can't tell the difference between these models at all, so their usage numbers are highly dependent on marketing. Google has massive distribution with world-wide brands that peopl…

> Normal, non-technical users can't tell the difference between these models at all, so their usage numbers are highly dependent on marketing.

When I think as a “normal” user, I can definitely see difference between them all.

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

#486

Post by hn_throwaway_99 »

MountDoom wrote: post #405
returnInfinity wrote: post #377

Earlier quoted context omitted.

ChatGpt has won. I talk to all teens living nearby and they all use chatgpt and not Google. The teens, they don't know what is OpenAI, they don't know what is Gemini. They sure know what is ChatGPT.

All of these teens use Google Docs instead of OpenAI Docs, Google Meet instead of OpenAI Meet, Gmail instead of OpenAI Mail, etc. I'm sure that far fewer people to go gemini.google.com than to chatgpt.com, but Google has LLMs seamlessly integrated in each of these products, and it's a part of people's workflows at school and at work. For a while, I was convinced that OpenAI had won and that Google won't be able to re…

> All of these teens use Google Docs instead of OpenAI Docs, Google Meet instead of OpenAI Meet, Gmail instead of OpenAI Mail, etc.

Google Docs, Google Meet and Gmail provide a tiny fraction of Google's overall revenue. And they're hardly integrated in with Google's humongous money maker, search, in a way that matters (Gmail has ads but my guess is that its direct revenue is tiny compared to search - the bigger value is the personalization of ads that Google can do by knowing more about you).

> I'm sure that far fewer people to go gemini.google.com than to chatgpt.com, but Google has LLMs seamlessly integrated in each of these products, and it's a part of people's workflows at school and at work.

But the product isn't "LLMs", the product is really "where do people go to find information", because that is where the money to be made in ads is.

I definitely don't think that OpenAI "winning" means Google is going anywhere soon, but I do agree with the comments that OpenAI has a huge amount of advertising potential, and that for a lot of people, especially younger people, "ChatGPT" is how they think of gen AI, and it's there first go-to resource when they want to look something up online.

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

#488

Post by rkharsan64 »

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 see multiple banner ads promoting ChatGPT on my way to work. (India)

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

#489

Post by louiskottmann »

wiseowise wrote: post #485
asa400 wrote: post #362

Earlier quoted context omitted.

What is OpenAI's competitive moat? There's no product stickiness here. What prevents people from just using Google, who can build AI stuff into their existing massive search/ads/video/email/browser infrastructure? Normal, non-technical users can't tell the difference between these models at all, so their usage numbers are highly dependent on marketing. Google has massive distribution with world-wide brands that peopl…

> Normal, non-technical users can't tell the difference between these models at all, so their usage numbers are highly dependent on marketing. When I think as a “normal” user, I can definitely see difference between them all.

As history showed us numerous times, it doesn't even have to be the best to win. It rarely is, really. See the most pervasive programming languages for that.

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

#490

Post by wiseowise »

ipaddr wrote: post #399
_aavaa_ wrote: post #339

Earlier quoted context omitted.

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

Normal people ignore ads. It gets easier with time. Television with ads means conversation about what we just watched.

Except you won’t be able to ignore ads if Chat doesn’t explicitly state that 5 of 10 suggested products are ads.
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