Comment by adamhartenz
Comment by adamhartenz 16 hours ago
Marketing != advertising. Although this budget probably does include some traditional advertising. It is most likely about building the brand and brand awareness, as well as partnerships etc. I would imagine the sales team is probably quite big, and host all kinds of events. But I would say a big chunk of this "sales and marketing" budget goes into lobbying and government relations. And they are winning big time on that front. So it is money well spent from their perspective (although not from ours). This is all just an educated guess from my experience with budgets from much smaller companies.
I agree - they're winning big and booking big revenue.
If you discount R&D and "sales and marketing", they've got a net loss of "only" $500 million.
They're trying to land grab as much surface area as they can. They're trying to magic themselves into a trillion dollar FAANG and kill their peers. At some point, you won't be able to train a model to compete with their core products, and they'll have a thousand times the distribution advantage.
ChatGPT is already a new default "pane of glass" for normal people.
Is this all really so unreasonable?
I certainly want exposure to their stock.