Comment by zurfer

Comment by zurfer a day ago

4 replies

The $13.5B net loss doesn't mean they are in trouble, it's a lot of accounting losses. Actual cash burn in H1 2025 was $2.5B. With ~$17.5B on hand (based on last funding), that’s about 3.5 years of runway at current pace.

fred_is_fred a day ago

Deprecation only gets worse for them as they build-out, not better.

  • dwaltrip a day ago

    It gets worse until we hit the ceiling on what current tech is capable of.

    Then they can stop burning cash on enormous training runs and have a shot at becoming profitable.

    • ceroxylon an hour ago

      This makes sense, but what happens when they stop burning cash on training runs and any of their competitors releases a better model that raises the ceiling?

      They will have to train one that is comparable (or better), or the word will spread and users will move to the better model.

    • FridgeSeal 17 hours ago

      They survive through inertia and “new model novelty”.

      The minute they lose that (not just them, the whole sector), they’re toast.

      I suspect they know this too, hence Sam-Altman admitting it’s a bubble so that he can try to ride it down without blowing up.