zlacker

>>tedsan+(OP)
You have to keep in mind Microsoft is planning on spending almost 100B in datacenter capex this year and they're not alone. This is basically OpenAI matching the major cloud provider's spending.

This could also be (at least partly) a reaction to Microsoft threatening to pull OpenAI's cloud credits last year. OpenAI wants to maintain independence and with compute accounting for 25–50% of their expenses (currently) [2], this strategy may actually be prudent.

[1] https://www.cnbc.com/2025/01/03/microsoft-expects-to-spend-8...

[2] https://youtu.be/7EH0VjM3dTk?si=hZe0Og6BjqLxbVav&t=1077

>>serjes+ja
Microsoft has lots of revenue streams tied to that capex outlay. Does OpenAI have similar revenue numbers to Microsoft?

>>throit+Oa
OpenAI has a very healthy revenue stream in the form of other companies throwing money at them.

But to answer your question, no they aren’t even profitable by themselves.

>>tuvang+Uc
Given the release of the new DeepSeek R1 model [0], OpenAI’s future revenue stream is probably more at risk than it was a week ago.

[0] - https://arstechnica.com/ai/2025/01/china-is-catching-up-with...

>>MR4D+Jm
OpenAI will not exist in 5 years, I'm calling it now. First movers to market dont always win, and they will surely lose.

>>misiti+4o
Google was first mover.

>>ipaddr+Jz
In what way? They weren't the first search engine, or advertising on the web?

>>Madnes+cB
In terms of ai and OpenAI leapfrogged them