Earlier quoted context omitted.
Sam in very particular here. This guy will say whatever for status and "power".
Oh look! Altman just made a deal with the DoW
Chatgpt, now with 10% more war crimes
OpenAI raises $110B on $730B pre-money valuation
551–560 of 620 posts
Re: OpenAI raises $110B on $730B pre-money valuation
#552Earlier quoted context omitted.
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.
Yep.
And unlike competitors, OpenAI has no ecosystem. Just a website and a domain name. Even a VSCode fork like Cursor is an improvement over that state.
Google pays over 15% of search revenue to be the default search engine on various browsers.
Re: OpenAI raises $110B on $730B pre-money valuation
#553The best part of this post is learning about xcancel
Re: OpenAI raises $110B on $730B pre-money valuation
#554Earlier quoted context omitted.
Sure it can. The value of the dollar coincides with stock market valuations.
"UBS downgraded the US stock market" happened today for a reason and you're implying that the US dollar lost 1000% of it's value since less than a decade ago? 1/10th of what it is worth today?
Where did you get 1000%?
S&P500 is up 3.7x since 2016.
Re: OpenAI raises $110B on $730B pre-money valuation
#555Earlier quoted context omitted.
Inference is already profitable (training is not)
[citation needed] OpenAI have made this claim and maybe it is with API pay-per-use (there's also good evidence eveb that is not if you dive into how much a rack of B200s cost to operate), but I'd be very sceptical that the free, $20 or $200 a month plans are profitable. Then the questions are if the market will bear the real cost and if so how competitive OpenAI are with Google when Google can do what Microsoft did t…
Just try using Claude with API for an hour and you will see that the subscriptions are definitely not profitable (unless they percent off “partying but dormant” is very high).
Re: OpenAI raises $110B on $730B pre-money valuation
#556Earlier quoted context omitted.
If OAI folded, there would also be a sudden tsunami of recent Nvidia hardware on the used market.
Specifically built for training and inference and not much else, and also they age like milk. I don’t see how that helps anyone.
It would be a fun day for hobbyists who want to run big open source models locally, if nothing else.
Re: OpenAI raises $110B on $730B pre-money valuation
#557Earlier quoted context omitted.
I've subscribed to a few AI tools for the last 3 years now. I'm someone who almost never subscribes to anything. I'm sure that $50b has my money in there somewhere.
Your subscription fees didn't fully pay for the amortization on the chips you used for the inference.
Inference is profitable. Gross margins are in the 50%+ apparently. This is coming from Anthropic CEO.
Re: OpenAI raises $110B on $730B pre-money valuation
#558Earlier quoted context omitted.
> 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 V…
It's a moat. Yes, they must keep refilling it, but it's all they have.
My PhD vs Einstein analogy was bad. What I mean is stupid vs smart. Nobody is going to pay for a stupid model when they can pay a bit more for smart.
Re: OpenAI raises $110B on $730B pre-money valuation
#559Earlier 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.
> If they are using a PhD but their competitors are using
god what are these assumptions
Re: OpenAI raises $110B on $730B pre-money valuation
#560Earlier quoted context omitted.
> 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.
> 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. For some tasks that matters. But for a lot of tasks, "good enough but cheaper" will win out. I'm sure there will be a market for whichever company has the best model, but just like most companies don't hire many PhD's, most companies won't feel a need for the highest end models e…
Models will get smarter and cheaper. For those that are burned directly into silicon, there will be a market for old models - as the alternative is to dump that silicon in a landfill.
For models that run on general-purpose AI hardware, I don't know why the vendors would waste that resource on old models.