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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

    ligasser@social.epfl.chL This user is from outside of this forum
    ligasser@social.epfl.chL This user is from outside of this forum
    ligasser@social.epfl.ch
    wrote last edited by
    #26

    @GossiTheDog I thought it's more like a negative 1'000% margin. So I'm actually quite surprised and think this might just fly.

    1 Reply Last reply
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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

      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
      #27

      @GossiTheDog

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

      G siguza@infosec.spaceS 2 Replies Last reply
      0
      • pl@cosocial.caP pl@cosocial.ca

        @GossiTheDog nothing a few ads can't fix!

        ptl@tooting.chP This user is from outside of this forum
        ptl@tooting.chP This user is from outside of this forum
        ptl@tooting.ch
        wrote last edited by
        #28

        @pl @GossiTheDog yeah +122% more ads
        More ads than content !!!
        Yeahh

        1 Reply Last reply
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        • su_liam@mas.toS su_liam@mas.to

          @Npars01 @shtrom @Azuaron @GossiTheDog “So Big They Must Fail”
          Anyone who even suggests an AI bail-out needs to leave Congress in tar and feathers.

          gabrielesvelto@mas.toG This user is from outside of this forum
          gabrielesvelto@mas.toG This user is from outside of this forum
          gabrielesvelto@mas.to
          wrote last edited by
          #29

          @su_liam @Npars01 @shtrom @Azuaron @GossiTheDog too big to bail

          1 Reply Last reply
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          • azuaron@cyberpunk.lolA azuaron@cyberpunk.lol

            @shtrom @GossiTheDog It would be absolutely amazing if the bubble popped before they even IPOed.

            mavu@mastodon.socialM This user is from outside of this forum
            mavu@mastodon.socialM This user is from outside of this forum
            mavu@mastodon.social
            wrote last edited by
            #30

            @Azuaron @shtrom @GossiTheDog didnt i read just yesterday speculation somewhere that they might surprise ipo this Friday?

            1 Reply Last reply
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            • shtrom@piaille.frS shtrom@piaille.fr

              @GossiTheDog

              endlessmason@hachyderm.ioE This user is from outside of this forum
              endlessmason@hachyderm.ioE This user is from outside of this forum
              endlessmason@hachyderm.io
              wrote last edited by
              #31

              @shtrom @GossiTheDog
              https://www.youtube.com/watch?v=bw9CALKOvAI

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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.

                1 Reply Last reply
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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: ♾️💰

                  1 Reply Last reply
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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.

                    1 Reply Last reply
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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?!

                      1 Reply Last reply
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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
                            0
                            • 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.

                              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?

                                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'?

                                1 Reply Last reply
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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
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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

                                    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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