What a silly article. 700,000 per day is ~256 million a year. Thats peanuts compared to the 10 billion they got from MS. With no new funding they could run for about a decade & this is one of the most promising new technologies in years. MS would never let the company fail due to lack of funding, its basically MS’s LLM play at this point.
When you get articles like this, the first thing you should ask is “Who the fuck is Firstpost?”
Openai biggest spending is infrastructure, Whis is rented from… Microsoft. Even if the company fold, they will have given back to Microsoft most of the money invested
MS is basically getting a ton of equity in exchange for cloud credits. That’s a ridiculously good deal for MS.
While title is click bite, they do say right at the beginning:
*Right now, it is pulling through only because of Microsoft’s $10 billion funding *
Pretty hard to miss, and than they go to explain their point, which might be wrong, but still stands. 700k i only one model, there are others and making new ones and running the company. It is easy over 1B a year without making profit. Still not significant since people will pour money into it even after those 10B.
There’s no way Microsoft is going to let it go bankrupt.
Clickbait crap.
I mean apart from the fact it’s not sourced or whatever, it’s standard practice for these tech companies to run a massive loss for years while basically giving their product away for free (which is why you can use openAI with minimal if any costs, even at scale).
Once everyone’s using your product over competitors who couldn’t afford to outlast your own venture capitalists, you can turn the price up and rake in cash since you’re the biggest player in the market.
It’s just Uber’s business model.
