this post was submitted on 04 Sep 2024
950 points (98.6% liked)
Technology
59756 readers
2800 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
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.