Investors are barely breaking even as the venture is hardly making any profits due to a shortage of chips, divided interests, and more.
… OpenAI has already seen a $540 million loss since debuting ChatGPT.
… OpenAI uses approximately 700,000 dollars to run the tool daily.
⚠️ First off, apologies as I didn’t cross check. Take it w/ a grain of salt.
This piece of news, if true, somehow explains why OpenAI has been coming up w/ weird schemes for making $$$ like entering the content moderation space.
On a similar note, I wonder if this had been a key driver (behind the scenes) in the recent investment in open source AI initiatives (Haidra comes to my mind?) Perhaps some corporations who haven’t got enough $$$ to fund their own dedicated research group are looking to benefit from an open source model?
Company whose business model is based entirely on running an enormously massive and expensive LLM and then serving content with it publicly for free with no greater ideas on actually turning that into a business is going under. In other news, water still wet.
I’ll admit I thought the AI bubble was going to last longer than a few months (and inevitably FAANG will probably artificially extend it until even they have to admit there’s not a ton of productive real world uses for it), but I suppose late stage capitalism has to speedrun the boom-bust cycle as it gets increasingly desperate for profit.
And instead of trying to make it use less resources to run, unlike Llama tries, openai just makes a new gpt that needs even more resources
If they have investors who are paying for that, I see no problem. Operating at loss is not newsworthy nowadays, this is new reality.
Well, AI is still going to be a buzzword for capitalists to throw around, as it does actually have uses and big profit usages in certain fields. Just, like, it’s certain fields. Then the grifters will continue to try to extrapolate that success to increasingly far removed use cases, with increasingly stupid promises.
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It has found a few legitimate uses though, hasn’t it? GitHub Copilot comes to mind, although the legal implications of it are up in the air.