louiereederson

i'm sure openai and their investors know what the cash burn is. it's also been well reported by The Information with no pushback from the company or investors. they have also reported that openai is forecasting $9b in training compute spending for 2025, up from $3b last year. this more or less lines up with Epoch's estimate that training compute has reliably grown by ~4x per year. the vast majority of that is just from building bigger data centers rather than chip performance improvements. you obviously need to grow revenue pretty quickly to absorb that.

https://www.theinformation.com/articles/openai-says-business...

https://epoch.ai/blog/training-compute-of-frontier-ai-models...

this is not accurate. microsoft recognizes openai losses on their income statement, proportionate to their ownership stake. this has created a huge drag on eps, along with a lot more eps volatility than in the past. it's gotten so bad that microsoft now points people to adjusted net income, which is notable as they had always avoided those games. none of this has been welcomed

i think the most important part of google vs openai is slowing usage of consumer LLMs. people focus on gemini's growth, but overall LLM MAUs and time spent is stabilizing. in aggregate it looks like a complete s-curve. you can kind of see it in the table in the link below but more obvious when you have the sensortower data for both MAUs and time spent.

the reason this matters is slowing velocity raises the risk of featurization, which undermines LLMs as a category in consumer. cost efficiency of the flash models reinforces this as google can embed LLM functionality into search (noting search-like is probably 50% of chatgpt usage per their july user study). i think model capability was saturated for the average consumer use case months ago, if not longer, so distribution is really what matters, and search dwarfs LLMs in this respect.

https://techcrunch.com/2025/12/05/chatgpts-user-growth-has-s...

i have a 5hr playlist on spotify called lost in the sea of ambien which happens to have many of the artist recos here. title is a reference to haruomi hosono who said he got lost in the sea of ambient in the 80s after leaving ymo.

this is bad reporting. microsoft's share of openai's cumulative loss over the lifetime of their investment is 11.5b. the microsoft share of openai's loss in the quarter was 4.1b, implying an 8b loss for openai itself assuming microsoft recognized 49% of openai losses per their ownership stake exiting the quarter. there may be some one time items that skew this, if not this is ain't good

short oracle

this article is so deeply misogynistic i thought it was satirical. is it?

"the rule of law will not survive the legal profession becoming majority female". are you kidding me?

the logic of a happy WeWork investor