OpenAI is expecting $3.7 billion in revenue this year, and is going to lose $5 billion, according to this article: https://www.nytimes.com/2024/09/27/technology/openai-chatgpt...
So they are currently printing 1 dollar bills at a cost of $2.35 each.
So they are currently printing 1 dollar bills at a cost of $2.35 each.
Jerry: How is it a write-off?
Cosmo Kramer: They just write it off.
Jerry: Write it off what?
Cosmo Kramer: Jerry, all these big companies, they write off everything.
Jerry: You don't even know what a write-off is.
Cosmo Kramer: Do you?
Jerry: No, I don't.
Cosmo Kramer: But they do. And they're the ones writing it off.
Not a value statement on whether is this is right or wrong.
That is my point.
That's orders of magnitude less than the thousands of employees and billions of dollars being deployed with no clear business model or profitability in sight.
They're paying $2.35 in hopes that the $1/year customer sticks around for more than a few months.