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OpenAI raises $110B on $730B pre-money valuation
541–550 of 620 posts
Re: OpenAI raises $110B on $730B pre-money valuation
#542Earlier quoted context omitted.
This is a common misconception OpenAI and others are already profitable on inference (inference is really really cheap) They are just heavily investing into the latest frontier The biggest risk is whether they can stay cutting edge, or if open source or others will catch up quickly.
> OpenAI and others are already profitable on inference (inference is really really cheap) If it's that cheap I'll soon be doing it self-hosted, or switching to a local provider. It's a race to the bottom for tokens-providers.
It is that cheap. Look at Deepseek or GLM pricing.
Re: OpenAI raises $110B on $730B pre-money valuation
#543Earlier quoted context omitted.
google search definitely has a moat. people build their websites to optimize for google's algorithm, therefore google users see better results -> google gets more users -> websites optimize for google -> repeat. Personally I never bother with 'bing SEO' or 'bing ppc ads'.
google search took over becuse all search engines sucked and theirs didn't in a few important ways. AND by default, ads over to the side, clean interface. Now all search engines suck and google's sucks just as bad or worse than the rest. If someone were to follow the original google playbook and make a search engine that helped people find things (eg by respecting the query syntax rather than making 'helpful' suggest…
Google search still has at least one competitive advantage: their crawlers are least likely to be blocked so they have the biggest index. AFAIK reddit is indexed by google but blocks all other search crawlers.
Re: OpenAI raises $110B on $730B pre-money valuation
#544Someone please explain how OpenAI is not Netscape 2026. They had first mover advantage but no network effect, no moat, and are racing to stay ahead of infinitely resourced incumbents.
How are ~1B active users not "moat"? Might have to pull out the "Haters gonna hate" like it's 2007
How many users did Netscape have?
Re: OpenAI raises $110B on $730B pre-money valuation
#545Earlier quoted context omitted.
I think you’re just describing how it’s circular. It’s like Toys R Us not having enough money to pay Mattel for Barbie dolls and telling Mattel they can have partial ownership of the company if they just supply them with some more toys. But the problem is that Toys R Us is spending $15, 20, or maybe even $50 (who knows?) to sell a $10 toy. Toys R Us continues selling toys faster and faster despite a lack of profit, m…
> But the problem is that Toys R Us is spending $15, 20, or maybe even $50 (who knows?) to sell a $10 toy. It's like how Uber and Airbnb in the early days were burning loads of cash to build market share. People went to these services because they were cheaper. Then they would increase prices once they had a comfortable position. OpenAI is also in a rapidly transforming field where there are a lot of cost reductions…
Where are the cost reductions exactly? Except for using AI hype as an excuse for layoffs. Can you showe a reference? Genuinely interested.
Re: OpenAI raises $110B on $730B pre-money valuation
#546Earlier quoted context omitted.
When models get cheaper to run for OpenAI, they also get cheaper for everyone else. It gets commoditized. AI might be able to do more, but most people aren’t going to pay for a thing they could get for free. See the many models on Huggingface as examples of that. And as the number of things AI is “good enough” at increases, the list of things on the frontier that people will want to pay OpenAI for shrinks. Even if Op…
> get cheaper to run Irrelevant. The model is the moat > most companies don’t care about that. Wrong. They will use the model that gives them an edge. If they are using a PhD but their competitors are using Einstein, they will lose. > center a div For sure a common use case, but is bot what the CEO is concerned about with AI.
> The model is the moat
What model? GPT4o certainly isn’t a moat for open ai. They need to keep training better and better models because qwen3, kimi k2.5 etc constantly nipping at their heels.
> Wrong. They will use the model that gives them an edge. If they are using a PhD but their competitors are using Einstein, they will lose.
It depends on the business. As much as I’d love to engage a PhD or an Einstein in my Verizon customer support call, it isn’t going to net the call center any value to pay for that extra compute.
Re: OpenAI raises $110B on $730B pre-money valuation
#547Earlier quoted context omitted.
> OpenAI and others are already profitable on inference (inference is really really cheap) If it's that cheap I'll soon be doing it self-hosted, or switching to a local provider. It's a race to the bottom for tokens-providers.
It is that cheap. Look at Deepseek or GLM pricing.
> It is that cheap. Look at Deepseek or GLM pricing.
Then it's a race to the bottom.
Re: OpenAI raises $110B on $730B pre-money valuation
#548Earlier quoted context omitted.
https://www.axios.com/2026/02/27/altman-openai-anthropic-pen... > Sam Altman says OpenAI shares Anthropic's red lines in Pentagon fight 90% chance it's all PR but who knows
Never believe anything sam says
Lmao, indeed, not even 24 hours later
> tonight, we reached an agreement with the Department of War to deploy our models in their classified network.
Re: OpenAI raises $110B on $730B pre-money valuation
#549Hopefully this will allow them to continue to provide me unreasonable amounts of compute for €20/month. Enjoying it while it lasts…
Have you tried to cancel recently? Might save you €20 next month.
Not sure why this made people sad.
If you try to cancel they just straight up give you a month for free. Take the VC money....
Re: OpenAI raises $110B on $730B pre-money valuation
#550Earlier quoted context omitted.
I think you’re just describing how it’s circular. It’s like Toys R Us not having enough money to pay Mattel for Barbie dolls and telling Mattel they can have partial ownership of the company if they just supply them with some more toys. But the problem is that Toys R Us is spending $15, 20, or maybe even $50 (who knows?) to sell a $10 toy. Toys R Us continues selling toys faster and faster despite a lack of profit, m…
> But the problem is that Toys R Us is spending $15, 20, or maybe even $50 (who knows?) to sell a $10 toy. It's like how Uber and Airbnb in the early days were burning loads of cash to build market share. People went to these services because they were cheaper. Then they would increase prices once they had a comfortable position. OpenAI is also in a rapidly transforming field where there are a lot of cost reductions…
And unlike Uber and Airbnb, OpenAI has no way to maintain marketshare. It’s a domain name with no moat.
Google has to pay Apple billions of dollars to make Google.com the default search engine. I just looked it up, over 15% of search revenue goes to pay to be the default search engine.
Every Android device defaults to Gemini.
Every Microsoft device defaults to Copilot.
I’d love to see where these cost reductions are. If costs are going to decrease rapidly why does OpenAI’s spending plan look so insane?