Eh? That article says nothing about their profit margins. Today they have something like $3.5B in ARR (not really, that’s annualized from their latest peak, in Feb they had like $2B ARR). Meanwhile they have operating costs over $7B. Meaning they are losing money hand over fist and not making a profit.
I’m not suggesting anything else, just that they are not profitable and personally I don’t see a road to profitability beyond subsidizing themselves with investment.
OpenAI is begging the British Parliament to allow it to use copyrighted works because it’s supposedly “impossible” for the company to train its artificial intelligence models — and continue growing its multi-billion-dollar business — without them.
And if you follow the link the title of the article says it all:
#OpenAI is set to see its valuation at $80 billion—making it the third most valuable startup in the world
The valuation is based on the expectation of the company to make massive profits. And if you think investor money is not profit for the people running Open AI, you’re crazy. We could only hope that they run out of money and go out of business. But that’ll never happen now with the amount of faith these corporations are putting in “AI” research.
Ah, I see you got that all wrong.
Open
IAAI uses that content to generate billions in profit on the backs of The People. The Internet Archive just does it for the good of The People.We can’t have that. “Good for The People” is not how the economy works, pal. We need profit and exploitation for the world to work…
OpenAI is burning billions of dollars not making profit.
Sounds like they are operating the same as all the other big tech companies then
Burn a ton a cash to become the only major player in the market and the proceed to enshitify as no one else has anywhere to go.
Wrong
https://futurism.com/the-byte/openai-copyrighted-material-parliament
Eh? That article says nothing about their profit margins. Today they have something like $3.5B in ARR (not really, that’s annualized from their latest peak, in Feb they had like $2B ARR). Meanwhile they have operating costs over $7B. Meaning they are losing money hand over fist and not making a profit.
I’m not suggesting anything else, just that they are not profitable and personally I don’t see a road to profitability beyond subsidizing themselves with investment.
It’s in the first bloody paragraph. 😮💨
And if you follow the link the title of the article says it all:
#OpenAI is set to see its valuation at $80 billion—making it the third most valuable startup in the world
I take it you don’t understand how startups work?
OpenAI is not making any profit and is losing money hand over fist today. Valuation and raising investment rounds isn’t profit.
Just because the company has a high valuation, doesn’t mean they’re making a profit. They’re indeed losing a lot of money and will go bankrupt if they don’t get new investment and/or increase their ARR soon. Right now, they’ve only got 12 months left before they’re out of money. https://www.windowscentral.com/software-apps/openai-could-be-on-the-brink-of-bankruptcy-in-under-12-months-with-projections-of-dollar5-billion-in-losses
The valuation is based on the expectation of the company to make massive profits. And if you think investor money is not profit for the people running Open AI, you’re crazy. We could only hope that they run out of money and go out of business. But that’ll never happen now with the amount of faith these corporations are putting in “AI” research.
I think you accidentally swapped OpenAI and Open IA which happens to initialize Internet Archive, a little confusing.
I didn’t even realise. Thank you for pointing it out, I fixed it.
“Good for the people”? You mean COMMUNISM?