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the claim that "AI companies can't be profitable" is pretty general. people just assume it based on how OpenAI operates, spending heavily to push innovation. I pay for several small AI tools monthly, and with good business plans, these companies can probably be profitable

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Would they be profitable if OpenAI was charging enough to break even, though? Are they hosting their own models and renting their own GPUs, or is OpenAI subsidizing them by running at a loss?

For what it's worth, I worked for an AI company, and while they weren't profitable when I was there I do think they will be eventually.

Seems you recently checked into 2024.

There are things called 'Open Weight' language models, a lot of which (those with between 8b to 34b parameters anyway) are considerably cheaper to run any of OpenAI's models.

Moreover, you get surprisingly out-of-class (size-wise) performance if you fine-tune for your specific problem space. Even if you only train in a parameter-efficient way.

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