OpenAI is a monumentally shit business

*THE* reason the AI folks ran to Washington to squeal about the civilization ending capabilities of their tech was because they knew this:

ChatGPT Plus has no real moat, little product differentiation (outside of its advanced voice mode, which Meta is already working on a competitor to), and increasing commoditization from other models, open source platforms, and even on-device models (like on Copilot+-powered PCs). 

They desperately needed a regulatory moat to protect themselves. Their reality is this:

Yet, once you get past these problems, you run head-first into the largest one: that generative AI is deeply unprofitable to run. When every subscriber or API call loses you money, growth only exists to help flog your company to investors, and at some point investors will begin to question whether this company can stand on its own two feet. 

So their only remaining strategy was to copy Musk with his FSD bullshit:

leader in the generative AI space does not appear to make that much money (less than 30% of its revenue) helping people put generative AI in their products, and makes most of their money selling subscriptions to a product that mostly coasts on hype. 

https://www.wheresyoured.at/oai-business/

Do you even “margin” bro?

Per the report, OpenAI projected in a document passed around to potential investors that it expects to lose a staggering $5 billion this year — a figure that eclipses the company’s projected year-end revenue of around $3.7 billion.

https://futurism.com/the-byte/openai-profit-bleeding-money

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