Comment by 93po
Comment by 93po 15 days ago
they would be break-even if all they did was serve existing models and got rid of everything related to R&D
Comment by 93po 15 days ago
they would be break-even if all they did was serve existing models and got rid of everything related to R&D
Inference contributes to their losses. In January 2025, Altman admitted they are losing money on Pro subscriptions, because people are using it more than they expected (sending more inference requests per month than would be offset by the monthly revenue).
So people find more value than they thought so they'll just up the price. Meanwhile, they still make more money per inference than they lose.
I think you maybe have misunderstood the parent (or maybe I did?). They're saying you can't compare an individual's cost to run a model against OpenAI's cost to run it + R&D. Individuals aren't paying for R&D, and that's where most of the cost is.
they are not the only player so getting rid of R&D would be suicide
Have they considered replacing their engineers with AI?