OpenAI is running out of cash
OpenAI may lose $5 billion this year and could run out of cash in 12 months unless they raise additional capital from VCs
The world's most valuable AI startup OpenAI reportedly burned $4 billion this year already on cloud costs alone and may spend another $3 billion+ on model training, as per The Information.
Meanwhile, their annualized revenue is around $3.4B.
In addition, given that Zuck's Meta just released their open-source Llama 3.1 model - giving you GPT-4 performance practically for free, not to mention the ability to train smaller, more specialized models yourself - it's no longer clear whether Sam Altman's Al startup has any moat.
What OpenAI have advantage in is their huge amount of data.
Their models are still better, faster, and cheaper. They were first, so any enterprise that did integration was with them, changing is not easy even for similar quality models.
They still have Sora (which is not even released yet) and no other company comes close to what they demonstrated.
The world's most valuable AI startup OpenAI reportedly burned $4 billion this year already on cloud costs alone and may spend another $3 billion+ on model training, as per The Information.
Meanwhile, their annualized revenue is around $3.4B.
In addition, given that Zuck's Meta just released their open-source Llama 3.1 model - giving you GPT-4 performance practically for free, not to mention the ability to train smaller, more specialized models yourself - it's no longer clear whether Sam Altman's Al startup has any moat.
What OpenAI have advantage in is their huge amount of data.
Their models are still better, faster, and cheaper. They were first, so any enterprise that did integration was with them, changing is not easy even for similar quality models.
They still have Sora (which is not even released yet) and no other company comes close to what they demonstrated.
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Tonyco : Doesn't Microsoft back Open AI?
10baggerbamm : roll the clock back to 2008 and Linux was front and center.. an open shared platform of software and operating system for everyone with the source code completely available to anybody. do you know how many stories were written that Linux will be the demise of Microsoft. I heard it at nausea.. all of the experts on TV said this is the Future lyrics an open platform or anybody can program where all of the innovation is shared and the future is unlimited. no more blue screens funny we had one this past week.. do I believe openai is going to shut their doors now will they do additional raises probably will they be the 800 lb gorilla in a decade I don't know but I do know one thing nobody talks about Linux anymore
InfiltradeR : Tesla was on the brink bankruptcy.
Space Dust : AI is extremely over hyped in this aspect for sure. The investment into it has already bought up any gains for the next 5 years.
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when tons of money pour in the overvalued inflation is accounted for by the God of all markets. Time
Sun Microsystems and Java..
the market turned on Juneteenth. delving into data will show it. how poetic, the day celebrated former slaves freedom is the day the market turned..
Pr3car1ous InfiltradeR : tsla got bailed out by the government after Econ started threatening politicians with lawsuits.....