Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter

Contrast this with Google who made $100Bn profit last quarter and on the side has Gemini with 650MAU and does 7B tokens/minute. It makes it clear that neither MS nor OAI know what they are doing.

Re: Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter

#5

Post by buyucu » Thu, Oct 30, 2025, 11:40 AM UTC

GiorgioG wrote: post #2

How long can this go on for?

As long as investors are willing to pay for it.

Re: Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter

#6

Post by JimDugan » Thu, Oct 30, 2025, 11:48 AM UTC

ml-anon wrote: post #4

Contrast this with Google who made $100Bn profit last quarter and on the side has Gemini with 650MAU and does 7B tokens/minute. It makes it clear that neither MS nor OAI know what they are doing.

Alphabet (Google) made $102.35 billion in revenue last quarter, not $100bn in profit.

Re: Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter

#7

Post by arcticbull » Thu, Oct 30, 2025, 11:58 AM UTC

Their revenue in the entire first half per the article was $4.3B, even if we assume it was backloaded in Q2 that’s a -500% profit margin. I’m very excited to review their S-1.

Like, for every dollar you give them they spend $5 to deliver the product. They’re selling $10 bills for $2. They seem to have taken the joke about making up losses with scale pretty seriously.

Re: Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter

#8

Post by arcticbull » Thu, Oct 30, 2025, 11:59 AM UTC

buyucu wrote: post #5

GiorgioG wrote: post #2

How long can this go on for?

As long as investors are willing to pay for it.

I can’t help but feel their push to go public is driven by their having milked the private markets dry.

Re: Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter

#9

Post by conartist6 » Thu, Oct 30, 2025, 12:10 PM UTC

arcticbull wrote: post #7

Their revenue in the entire first half per the article was $4.3B, even if we assume it was backloaded in Q2 that’s a -500% profit margin. I’m very excited to review their S-1. Like, for every dollar you give them they spend $5 to deliver the product. They’re selling $10 bills for $2. They seem to have taken the joke about making up losses with scale pretty seriously.

What Theo claims on YouTube is that each model they make is profitable over its lifetime and the weird numbers for the company are because they keep training more models, having to pay up front to buy a bunch of future profit each time basically

Re: Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter

#10

Post by TSiege » Thu, Oct 30, 2025, 12:15 PM UTC

conartist6 wrote: post #9

arcticbull wrote: post #7

Their revenue in the entire first half per the article was $4.3B, even if we assume it was backloaded in Q2 that’s a -500% profit margin. I’m very excited to review their S-1. Like, for every dollar you give them they spend $5 to deliver the product. They’re selling $10 bills for $2. They seem to have taken the joke about making up losses with scale pretty seriously.

What Theo claims on YouTube is that each model they make is profitable over its lifetime and the weird numbers for the company are because they keep training more models, having to pay up front to buy a bunch of future profit each time basically

This claim that if they stopped training new models wouldn’t the old ones become stale as things are updated? Not sure how quickly that would occur but it does seem likely as the world moves fast