Comment by ascorbic
Comment by ascorbic 15 hours ago
> An innovative product with no means of significant revenue generation.
OpenAI has annualized revenue of $20bn. That's not Google, but it's not insignificant.
Comment by ascorbic 15 hours ago
> An innovative product with no means of significant revenue generation.
OpenAI has annualized revenue of $20bn. That's not Google, but it's not insignificant.
Google is embedding Gemini into Chrome Developer Tools. You can ask for an analysis of individual network calls in your browser by clicking a checkbox. That's just an example of the power of platform. They seem to be better at integration than Microsoft.
OpenAI has this amazing technology and a great app, but the company feels like some sort of financial engineering nightmare.
To be fair the CEO of OpenAI is also a crypto bro. Financial engineering is right up their wheelhouse.
We live in crazy times, but given what they’ve spent and committed to that’s a drop in the bucket relative to what they need to be pulling in. They’re history if they can’t pump up the revenue much much faster.
Given that we’re likely at peak AI hype at the moment they’re not well positioned at all to survive the coming “trough of disillusionment” that happens like clockwork on every hype cycle. Google, by comparison, is very well positioned to weather a coming storm.
Every F500 CEO told their team "have an AI strategy ASAP".
In a year, when the economy might be in worse shape, they'll ask their team if the AI thing is working out.
What do you think happens to all the enterprise OpenAI contracts at that point? (Especially if the same tech layperson CEOs keep reading Forbes and hearing Scott Galloway dump on OpenAI and call the AI thing a "bubble"?)
I will change a few lines of code and use another AI model?
Yeah- given all top AI models are more and more generalists, as time goes on there is less and less reason to use one over another.
It’s really even easier than that. I already do all my work on AWS and use Bedrock that hosts every popular model and its own except for OpenAIs closed source models.
I have a reusable library that lets me choose between any of the models I choose to support or any new model in the same family that uses the same request format.
Every project I’ve done, it’s a simple matter of changing a config setting and choosing a different model.
If the model provider goes out of business, it’s not like the model is going to disappear from AWS the next day.
Are all of their sales their code gen model? And isn't there a lot of competition in the code gen space from Google and Anthropic?
I'd imagine they sold these to enterprise:
"ChatGPT for Business", sold per seat
"API Platform"
I could see the former getting canned if AI isn't adding value.
Developers can change the models they use frequently, especially with third party infrastructure like OpenRouter or FAL.
It is insignificant when they're spending more than $115bn to offer their service. And yes, I say "more than," not because I have any inside knowledge but because I'm pretty sure $115bn is a "kind" estimate and the expenditure is probably higher. But either way, they're running at a loss. And for a company like them, that loss is huge. Google could take the loss as could Microsoft or Amazon because they have lots of other revenue sources. OAI does not.