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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

#631

Post by wslh »

ppseafield wrote: post #452
vitus wrote: post #380

Earlier quoted context omitted.

> google.com, youtube, chrome, android, gmail, google map etc Of those, it's 50/50. The acquisitions were YT, Android, Maps. Search was obviously Google's original product, Chrome was an in-house effort to rejuvenate the web after IE had caused years of stagnation, and Gmail famously started as a 20% project. There are of course criticisms that Google has not really created any major (say, billion-user) in-house prod…

Chrome's engine was WebKit originally, which they then forked. Not an acquisition, but benefitted greatly from prior work.

Indeed Chrome included many relatively small acquisitions to be built. For example, GreenBorder for sandboxing and Skia for the 2D graphics engine. At that time sandboxing was novel for a browser.

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

#632

Post by shmeeed »

ulfw wrote: post #523
famouswaffles wrote: post #465

Earlier quoted context omitted.

>All of these teens use Google Docs instead of OpenAI Docs, Google Meet instead of OpenAI Meet, Gmail instead of OpenAI Mail, etc. Billions of people use Meta apps and products. Meta AI is all over all those apps. Why is usage minuscule compared to ChatGPT or even Gemini ? Google has billions of users, many using devices operating their own OS, in which Gemini is now the default AI assistant, so why does ChatGPT usag…

I keep hearing that from Meta Propaganda. All those fascinating AI stats. I've never once seen Meta AI.

Like most people, I once clicked on what looks a chat- or contacts-related search field in Whatsapp when that appeared in the UI.

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

#633

Post by rhetocj23 »

ares623 wrote: post #289
SeanAnderson wrote: post #262

Earlier quoted context omitted.

I can see why you'd make that analogy, but that wasn't quite what I was trying to say. I just meant that not all expenses are created equal. Plenty of companies have high burn rates due to high R&D costs. It can make them look unprofitable on paper, but it's a tactic used to scale quicker, get economies of scale, higher leverage in negotiating, etc. It's not a requirement that they invest in R&D indefinitely. In cont…

Apologies for the snark. I don't think they can stop the 3 things you mentioned though. - Stopping R&D means their top engineers and scientists will go elsewhere - Stopping marketing means they will slowly lose market share. I don't care for marketing personally but I can appreciate its importance in a corporation - Stopping/reducing compensation will also make them lose people The costs are an inherent part of the c…

Its always a relief to read posts like these on here amid the noise.

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

#634

Post by rhetocj23 »

ares623 wrote: post #234
gizajob wrote: post #156

Earlier quoted context omitted.

There’s been loads of these signals and the market keeps ignoring them.

Because everyone knows that there’s no where else to go.

Exactly. The opportunity set isnt large.

The best play for all portfolio managers is to froth up the stock price and take their returns later.

Everyone knows this a bubble but the returns at the end of this of those who time it are juicy - portfolio managers have no choice to be in this game because those who supply the money they invest on their behalf, demand it.

Its that simple.

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

#635

Post by rhetocj23 »

myth_drannon wrote: post #312
gizajob wrote: post #156

Earlier quoted context omitted.

There’s been loads of these signals and the market keeps ignoring them.

I will always remember Jim Cramer's melt down https://youtu.be/SWksEJQEYVU Not saying that will happen, but it's always good to rewatch just as a reminder how bad things can get.

wow that energy lol!

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

#636

Post by rhetocj23 »

pizlonator wrote: post #394

I am the only one who thinks, "that's not as bad as I expected"? Because I can be quite bearish and frankly this isn't bad for a technology that is this new. The income points to significant interest in using the tech and they haven't even started the tried-and-true SV strategy we lovingly call enshittification (I'm not trying to be ironic, I mean it)

The problem is they are dealing with a stealthy giant in Google who is not a sleeping giant like those in past disruptions.

Google will have an incentive to destroy OAI financially through whatever means and make it difficult for them to raise future money since they are not generating enough free cash flows (to the firm) from their operations after reinvestment.

OAI going after Meta/TikTok with Sora will also be a strategic blunder in retrospect I believe.

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

#637

Post by Culonavirus »

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…

> $4.3 billion in revenue - presumably from ChatGPT customers and API fees

Yeah and from stealing people's money. Did you know that your purchased API "credits" have an expire date? That's right.

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

#638

Post by whizzter »

gizmodo59 wrote: post #191
whizzter wrote: post #133

Earlier quoted context omitted.

My input to our recent AI strategy workshop was basically: - OpenAI,etc will go bankrupt (unless one manages to capture search from a struggling Google) - We will have a new AI winter with corresponding research slowdown like in the 1980s when funding dries up - Opensource LLM instances will be deployed to properly manage privacy concerns.

99% of the world doesn’t care a dime about oss. It’s all saas and what you host behind the saas is only a concern for enterprise (and not every enterprise). And openai or Anthropic can just stop training and host oss models as well.

Everyone cares about OSS as in "free", the capital spending of AI firms and market capitalization hinges on the concept that they will save enterprises tons of money by off-sourcing employees.

You think we have these crazy valuations because the market thinks that OpenAI will make joe-schmoe buy enough of their services? (Them introducing "shopping" into the service honestly feels like a bit of a panicky move to target Google).

We're prototyping some LLM assisted products, but right now the cost-model isn't entirely there since we need to use more expensive models to get good results that leaves a small margin, spinning up a moderately sized VM would probably be more cost effective option and more people will probably run into this and start creating easy to setup models/service-VM's (maybe not just yet, but it'll come).

Sure they could start hosting things themselves, but what's stopping anyone from finding a cheaper but "good enough" alternative?

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

#640

Post by oblio »

bobxmax wrote: post #620
oblio wrote: post #421

Earlier quoted context omitted.

1. Claude Code is claimed to have hit €500m ARR in 3 months. 2. What is the Claude Code profit for the same period? 3. What is the Claude Code profit per request served when excluding fixed expenses such as training the models?

Who cares? Are you not seeing the exponential decrease in GPU inference costs? H100s costs 3x what they did a year ago.

I'm not sure I understand how B (H100s costs 3x what they did a year ago) follows from A (exponential decrease in GPU inference costs).
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