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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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  • 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

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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?

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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.

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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
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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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