According to this analysis from a few months back: https://www.wheresyoured.at/oai-business/
OpenAI are kind of fundamentally unsustainable as a business.
OpenAI are kind of fundamentally unsustainable as a business.
Leaders in their market, at first because of a small moat and large advance, then the advance shrink but the brand will stay first for at least a decade due to brand recognition.
The Amazon comp works less, unless openAI start to suddenly build the sell their own chips.
https://www.fool.com/investing/2024/01/10/amazon-e-commerce-...
"In 2023, Amazon accounted for 37.6% of all e-commerce sales in America, which was light-years ahead of second-place Walmart at 6.3%."
Amazon is highly successful even without AWS.
OpenAI don't make money because they're losing money on inference. If you remove their capex - training costs, which you can't because they have to remain competitive, they'd still be losing money.
> OpenAI has a "text embeddings" API that is used primarily for tasks where you want to identify anomalies or relationships in text, or classify stuff in text"
They're the most comprehensive writeups in that aspect, although not as technically-oriented as most content on HN.
I hadn't heard of the author before that article, but all the math and logic in it is sound. There is some guesswork on exact numbers (because OpenAI don't publish that sort of information) you can disagree with, but IMO it's fairly generous in their favour. And it still looks pretty bad for their financial prospects.
He's a good writer, but his content is written through an extreme anti-AI lens, so take it with a pretty big grain of salt.