I believe there is a 10x ratio for capital expenditure for AI over income. That hopefully will improve.
spaceraingame on
Why are its operating costs so high? Isn’t AI mostly automatic?
not_creative1 on
There is no winning this AI war for openAI.
Meta alone is expected to spend $40 billion on AI this year. Google is somewhere close to that too.
OpenAI cannot compete with these tech giants who have unlimited cash.
In 5 years, openAI will either need to be acquired by Microsoft/Apple/Amazon or implode/fall behind/not exist.
Sam is not going to be able to raise $30 billion a year and build an independent company that competes with the big boys. He seems to have pissed off Microsoft by signing deals with Apple, and Microsoft CEO recently said he sees openAI as a competitor. My bet is this is why everyone’s leaving. They are realising Sam does not want to play ball with Microsoft and thinks he can beat Google/meta/micorsoft and build an independent company. They know he can’t. They see writing on the wall.
You can’t win a spending war with meta/google on your own or with VC money.
Only way this may work is if Sam can convince something like the Saudi sovereign wealth fund or Qatari wealth fund to give him $20 billion a year and he promises them to build a trillion dollar company with it. May be he can tell Saudi wealth fund that he will build the next google and the fund can own like half of it.
May be it will work. Saudi handing over $20 billion to Sam is a vastly better investment than them spending it on building some glass city in the desert that nobody wants to live in.
8 Comments
They should use AI to figure out how to make $$$$
I believe there is a 10x ratio for capital expenditure for AI over income. That hopefully will improve.
Why are its operating costs so high? Isn’t AI mostly automatic?
There is no winning this AI war for openAI.
Meta alone is expected to spend $40 billion on AI this year. Google is somewhere close to that too.
OpenAI cannot compete with these tech giants who have unlimited cash.
In 5 years, openAI will either need to be acquired by Microsoft/Apple/Amazon or implode/fall behind/not exist.
Sam is not going to be able to raise $30 billion a year and build an independent company that competes with the big boys. He seems to have pissed off Microsoft by signing deals with Apple, and Microsoft CEO recently said he sees openAI as a competitor. My bet is this is why everyone’s leaving. They are realising Sam does not want to play ball with Microsoft and thinks he can beat Google/meta/micorsoft and build an independent company. They know he can’t. They see writing on the wall.
You can’t win a spending war with meta/google on your own or with VC money.
Only way this may work is if Sam can convince something like the Saudi sovereign wealth fund or Qatari wealth fund to give him $20 billion a year and he promises them to build a trillion dollar company with it. May be he can tell Saudi wealth fund that he will build the next google and the fund can own like half of it.
May be it will work. Saudi handing over $20 billion to Sam is a vastly better investment than them spending it on building some glass city in the desert that nobody wants to live in.
God is good
I’m surprised they made _that_ much.
Not enough, need to lose more.
How do you lose more than your revenues?