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  3. OpenAI has a negative 122% operating margin and growth of usage has stopped.

OpenAI has a negative 122% operating margin and growth of usage has stopped.

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  • gossithedog@cyberplace.socialG gossithedog@cyberplace.social

    OpenAI has a negative 122% operating margin and growth of usage has stopped. https://www.theinformation.com/articles/openai-held-1-billion-revenue-lead-anthropic-first-quarter

    endrift@social.treehouse.systemsE This user is from outside of this forum
    endrift@social.treehouse.systemsE This user is from outside of this forum
    endrift@social.treehouse.systems
    wrote last edited by
    #32

    @GossiTheDog @rmondello been saying for weeks that OpenAI is gonna implode before the end of the year. Wish I could say the same looked true for Anthropic and the Gemini business unit, but maybe I just need to wait for the first domino to fall.

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    • gossithedog@cyberplace.socialG gossithedog@cyberplace.social

      OpenAI has a negative 122% operating margin and growth of usage has stopped. https://www.theinformation.com/articles/openai-held-1-billion-revenue-lead-anthropic-first-quarter

      hannorein@mastodon.socialH This user is from outside of this forum
      hannorein@mastodon.socialH This user is from outside of this forum
      hannorein@mastodon.social
      wrote last edited by
      #33

      @GossiTheDog ok, hear me out. I think I found a way to make infinite money! What if they spent the $1.22 on more OpenAI credits!? Then they’d create an extra $1.22 revenue. Which they can spend on another $1.49 of OpenAI credits. And so on. Result: ♾️💰

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      • gossithedog@cyberplace.socialG gossithedog@cyberplace.social

        OpenAI has a negative 122% operating margin and growth of usage has stopped. https://www.theinformation.com/articles/openai-held-1-billion-revenue-lead-anthropic-first-quarter

        lightfighter@infosec.exchangeL This user is from outside of this forum
        lightfighter@infosec.exchangeL This user is from outside of this forum
        lightfighter@infosec.exchange
        wrote last edited by
        #34

        @GossiTheDog You have to figure these are the absolute best numbers they could manipulate. The truth is probably far worse.

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        • scottmichaud@mastodon.gamedev.placeS scottmichaud@mastodon.gamedev.place

          @GossiTheDog -122% is actually better than I expect. I'm wondering how many "large line items" are being excluded. Does it include some things that are core to the business?

          valpackett@social.treehouse.systemsV This user is from outside of this forum
          valpackett@social.treehouse.systemsV This user is from outside of this forum
          valpackett@social.treehouse.systems
          wrote last edited by
          #35

          @scottmichaud @GossiTheDog maybe that metric doesn't take total spend / subsidies into account at all???

          like for every dollar of revenue, the actual cost of delivering the exact amount of service the dollar was billed for was 1.22

          but that would say nothing about the cost of the service performed for free

          because otherwise yeah how do you reconcile just -122℅ with the FUCKING BONKERS % increases from the github copilot billing previews?!

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          • geonz@mathstodon.xyzG This user is from outside of this forum
            geonz@mathstodon.xyzG This user is from outside of this forum
            geonz@mathstodon.xyz
            wrote last edited by
            #36

            @starluna @GossiTheDog I also wonder about that percent margin.

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            • gossithedog@cyberplace.socialG gossithedog@cyberplace.social

              OpenAI has a negative 122% operating margin and growth of usage has stopped. https://www.theinformation.com/articles/openai-held-1-billion-revenue-lead-anthropic-first-quarter

              isurandil@mastodon.onlineI This user is from outside of this forum
              isurandil@mastodon.onlineI This user is from outside of this forum
              isurandil@mastodon.online
              wrote last edited by
              #37

              @GossiTheDog AI Native Ads soon coming to you.

              "Hey, Chattie, how can I get rid of limescale?"

              Before: "You can clean limescale with citric acid."

              After: "Best limescale removal can only be achieved with CiT-X. Do you want me to order it now? There is a 20% discount if you order this through me."

              tux0r@layer8.spaceT 1 Reply Last reply
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              • david_chisnall@infosec.exchangeD david_chisnall@infosec.exchange

                @GossiTheDog

                So, you’re saying it’s good news: their losses are not going to keep increasing?

                G This user is from outside of this forum
                G This user is from outside of this forum
                gerardthornley@hachyderm.io
                wrote last edited by
                #38

                @david_chisnall @GossiTheDog is that good news? 😏

                david_chisnall@infosec.exchangeD 1 Reply Last reply
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                • G gerardthornley@hachyderm.io

                  @david_chisnall @GossiTheDog is that good news? 😏

                  david_chisnall@infosec.exchangeD This user is from outside of this forum
                  david_chisnall@infosec.exchangeD This user is from outside of this forum
                  david_chisnall@infosec.exchange
                  wrote last edited by
                  #39

                  @GerardThornley @GossiTheDog

                  Well, from their perspective.

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                  • david_chisnall@infosec.exchangeD david_chisnall@infosec.exchange

                    @GossiTheDog

                    So, you’re saying it’s good news: their losses are not going to keep increasing?

                    siguza@infosec.spaceS This user is from outside of this forum
                    siguza@infosec.spaceS This user is from outside of this forum
                    siguza@infosec.space
                    wrote last edited by
                    #40

                    @david_chisnall @GossiTheDog I mean, they still have to train ever bigger models that require ever more compute to run. What do you call the opposite of 'economies of scale'?

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                    • isurandil@mastodon.onlineI isurandil@mastodon.online

                      @GossiTheDog AI Native Ads soon coming to you.

                      "Hey, Chattie, how can I get rid of limescale?"

                      Before: "You can clean limescale with citric acid."

                      After: "Best limescale removal can only be achieved with CiT-X. Do you want me to order it now? There is a 20% discount if you order this through me."

                      tux0r@layer8.spaceT This user is from outside of this forum
                      tux0r@layer8.spaceT This user is from outside of this forum
                      tux0r@layer8.space
                      wrote last edited by
                      #41

                      @Isurandil @GossiTheDog I absolutely hate how every Black Mirror episode will become reality sooner than we think.

                      1 Reply Last reply
                      0
                      • gossithedog@cyberplace.socialG gossithedog@cyberplace.social

                        OpenAI has a negative 122% operating margin and growth of usage has stopped. https://www.theinformation.com/articles/openai-held-1-billion-revenue-lead-anthropic-first-quarter

                        anthropy@mastodon.derg.nzA This user is from outside of this forum
                        anthropy@mastodon.derg.nzA This user is from outside of this forum
                        anthropy@mastodon.derg.nz
                        wrote last edited by
                        #42

                        @GossiTheDog

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