OpenAI

OpenAI expects $5 billion in losses on $3.7 billion in revenue for 2024, as reported by CNBC. This financial landscape sparked widespread discussion, reflecting on both the company’s challenges and its promising future growth. The reaction on Reddit highlights a blend of optimism, skepticism, and the complex economics driving the generative AI boom. Financials in Perspective Revenue: OpenAI hit $300 million in August, marking 1,700% growth since 2023. Next Year: The company expects $11.6 billion in revenue in 2025. Losses: Expected losses of $5 billion are tied to operational costs like salaries and massive infrastructure expenses. A popular sentiment was that losses in the tech industry are typical, with one user stating, “A tech headline as old as technology.” Another user added a humorous twist, saying “🎶 A tech as old as time 🎶.” These comments underscore that large initial losses are a familiar story in tech’s rapid expansion phases. ...

OpenAI: From Non-Profit Idealism to For-Profit Reality OpenAI has officially moved from its idealistic origins, as Sam Altman pushes the company further into the realm of profit-driven motives. Once lauded for its mission to create artificial general intelligence (AGI) for the benefit of humanity, OpenAI’s structure has been overhauled. The shift from a non-profit overseeing a capped-profit entity is now transitioning into a fully for-profit machine, designed to deliver financial returns for investors like Microsoft. This marks the end of OpenAI’s initial promise to share profits with the public. ...