OpenAI May Be in Major Trouble Financially
https://futurism.com/openai-trouble-subprimeOpen linkView original on pawb.social103
Comments24https://futurism.com/openai-trouble-subprimeOpen linkView original on pawb.socialhttps://futurism.com/openai-trouble-subprimeOpen linkView original on pawb.social
It's almost like their product consumes enormous amounts of energy to produce an output that isn't actually worth much at all.
Please bro, trust me bro, just a few more billion. AGI is just around the corner bro
We can only hope.
I can't wait for the bubble to pop.
I can. The longer it takes, the more rich assholes wind up looking like idiots.
It’s going to absolutely wreck our economy. Nvidia, the most valuable company in history, will get crushed. All the money that companies have spent by going “all in” on ai will have wasted years of time and resources. It’s going to get ugly for everybody’s 401(k)s.
Well . . .yeah.
That's why this whole idiotic exercise shouldn't have been done. But venture capital got super fucking high on its own supply.
Yeah, I think we all agree here that we should never have gotten to this spot. Hype be hypin'. I'm just predicting what the ramifications will be, but I also realize that I'm preaching to the choir in
fuck_ai. I tell normies this and they look at me like I'm utterly batshit. They've been absolutely convinced that Oz is real.No kidding. At work everyone (who is not technical) is breathlessly awaiting the wonderful new functions that AI will bring us! And they went and got an assistant professor from some school to prove that AI can trawl websites and now they're just about to squeal with joy they're so excited.
Christ.
Maybe they'll start focusing on actually good GPUs again if that happens.
To hit that kind of revenue they would need to convince 5% of the world's population to spend $20 a month on a chatbot. Netflix has barely managed to reach about two thirds of that subscriber number, and they offer a whole-ass streaming service. Obviously OpenAI can supplement consumer sales with enterprise and API access, but so far they're doing a very bad job of that.
But even if they did hit those numbers, they'd still be running at a loss. By their own admission their product isn't even profitable at $200 a month. More customers won't make you more money when everything you sell is a loss leader.
There probably are people who consider $200 a month for an AI to be worthwhile, or their employer does, but I doubt there are enough to keep multiple AI companies running.
At that insane rate, it would be much more cost effective to just buy really good hardware and run open weight models locally.
They have not had a single profitable quarter,
https://www.cnbc.com/2024/09/27/openai-sees-5-billion-loss-this-year-on-3point7-billion-in-revenue.html
Last year they made 3.7bil in revenue, but despite that they still lost 5bil.
5 billion dollars set on fire for no good reason, in 1 year.
With them going public and starting military contracts they hope to pivot into an actually profitable use for AI, by helping MAGA automate fascism and warfare.
I hope these shitty AI companies all crash and burn, overhyped trash all of it.
It took Uber 15 years to finally be profitable. OpenAI has a long way to burn, before they give up.
I think this has been true since the start. They have never not been in hot water financially.
that's what they've been doing and they're all out of ideas chatgpt can come up with.
I'm now playing a violin which measures several nanometers across.
It’s just gonna end up with a huge price increase, and the short sighted people who built their business or their workflow on it will have to either eat that cost or get their heads out of their asses.
Please please please— the ehyaiy is making me miss the blockchain era and I hated the blockchain era
about fucking time
😢
No, wait! I hope they have enough time to put out their shitty AI app/browser and then they go bankrupt.
We need as many nails in the coffin as we can get at this point and their failure is hopefully a predictor for the future of big AI.