Sounds like poor management. I don’t see how that is any one else’s problem though.
Would help if they would offer more payment options than just credit card, which is not really popular in many countries
Indian newpapers publish anything without any sort of verification. From reddit videos to whatsapp forwards. More than news, they are like an old chinese whispers game which is run infinitely. So take this with a huge grain of salt.
Oh no… anyway
This article is dumb as shit
Right!? I believe it has the hallmark repetitive blandness indicating AI wrote it (because oroboros)
No sources and even given their numbers they could continue running chatgpt for another 30 years. I doubt they’re anywhere near a net profit but they’re far from bankruptcy.
The flow of the writing style felt kinda off, like someone was speaking really fast spewing random trivia and leaving
I mean apart from the fact it’s not sourced or whatever, it’s standard practice for these tech companies to run a massive loss for years while basically giving their product away for free (which is why you can use openAI with minimal if any costs, even at scale).
Once everyone’s using your product over competitors who couldn’t afford to outlast your own venture capitalists, you can turn the price up and rake in cash since you’re the biggest player in the market.
It’s just Uber’s business model.
The difference is that the VC bubble has mostly ended. There isn’t “free money” to keep throwing at a problem post-pan. That’s why there’s an increased focus on Uber (and others) making a profit.
I don’t know anything about anything, but part of me suspects that lots of good funding is still out there, it’s just being used more quietly and more scrupulously, & not being thrown at the first microdosing tech wanker with a great elevator pitch on how they’re going to make “the Tesla of dental floss”.
This is what caused spez at Reddit and Musk at Twitter to go into desperation mode and start flipping tables over. Their investors are starting to want results now, not sometime in the distant future.
In this case, Microsoft owns 49% of OpenAI, so they’re the ones subsidizing it. They can also offer at-cost hosting and in-roads into enterprise sales. Probably a better deal at this point than VC cash.
Speaking of Uber, I believe it turned a profit the first time this year. That is, it never made any profit since its creation in whenever it was created.
All it’s every done is rob from it’s employees so it can give money to stockholders. Just like every corporation.
What a silly article. 700,000 per day is ~256 million a year. Thats peanuts compared to the 10 billion they got from MS. With no new funding they could run for about a decade & this is one of the most promising new technologies in years. MS would never let the company fail due to lack of funding, its basically MS’s LLM play at this point.
While title is click bite, they do say right at the beginning:
*Right now, it is pulling through only because of Microsoft’s $10 billion funding *
Pretty hard to miss, and than they go to explain their point, which might be wrong, but still stands. 700k i only one model, there are others and making new ones and running the company. It is easy over 1B a year without making profit. Still not significant since people will pour money into it even after those 10B.
Openai biggest spending is infrastructure, Whis is rented from… Microsoft. Even if the company fold, they will have given back to Microsoft most of the money invested
MS is basically getting a ton of equity in exchange for cloud credits. That’s a ridiculously good deal for MS.
I mean, you’re correct in the sense Microsoft basically owns their ass at this point, and that Microsoft doesn’t care if they make a loss because it’s sitting on a mountain of cash. So one way or another Microsoft is getting something cool out of it. But at the same time it’s still true that OpenAI’s business plan was unsustainable hyped hogwash.
Also, their biggest expenses are cloud expenses, and they use the MS cloud, so that basically means that Microsoft is getting a ton of equity in a hot startup in exchange for cloud credits which is a ridiculously good deal for MS. Zero chance MS would let them fail.
Their business plan got Microsoft to drop 10 billion dollars on them.
None of my shitty plans have pulled that off.
If they got any of that into their own pockets kudos to them.
Mainly they used it to pay for the tech and research and it’s all reverting back to Microsoft eventually. Going bankrupt is not quite the same as being acquired.
When you get articles like this, the first thing you should ask is “Who the fuck is Firstpost?”
Yeah where the hell do these posters find these articles anyway? It’s always from blogs that repost stuff from somewhere else
The difference is in who gets the ad money.
Almost every company uses either Google or Microsoft Office products and we already know that they’re working on an AI offering/solution for O365 integration, they can see the writing on the wall here and are going to profit massively as they include it in their E5 license structure or invent a new one that includes AI. Then they’ll recoup that investment in months.
LLM’s are pricey to train and evaluate, much more so than compositional models.
But no, OpenAI aren’t going bust due to this. Given that they have the most successful LLM on the market, it’s safe to say that they probably know how much they cost, and can calculate roughly how much their yearly spend will be.
You make a good point.
But maybe they asked their AI model and it misplaced a decimal. /s
The thing about all GPT models is that they’re based on the frequency of the word to determine its usage. Which means the only way to get good results is if it’s running on cutting edge equipment designed specifically for that job, while being almost a TB in size. Meanwhile, Diffusion models are only GB and run on the GPU but still produce masterpieces because they already know what that word is associated with.
This is alarming…
One of the things companies have started doing lately is signaling “we could do bankrupt”, then jumping ahead a stage on enshittification
I don’t think OpenAI needs any excuses to enshittify, they’ve been speedrunning ever since they decided they liked profit instead of nonprofit.
Microsoft gave them 10 billion moneys. They’ll be fine.
That’s not what I said.
Money doesn’t mean shit - enshittification is about potential cash flow
I’m not arguing with you. Chill.
They’re gonna be in even bigger trouble when it’s determined that AI training, especially for content generation, is not fair use and they have to pay each and every person whose data they’ve used.
AI is too useful and too powerful that none of the major players in world politics are going to put serious restrictions on it, do you really think they’re going to risk Chinese and Russian ai giving them the economic and scientific edge?
Yes selfish people want to stop progress which could help everyone in the world hey access to education, medical care, legal advice, social care, etc because they think they’re owed twenty cents for the text they wrote but thankfully society isn’t going to take them seriously, there are money grubbers and antisocial people everywhere who are looking for any chance to ruin things that could help others and we ignore those people.
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A) Most companies jumping on the AI bandwagon are training their own models.
B) The music industry has been legally using samples to create new songs since the 90’s.
AI is here to stay.
What’s legal changes. There will absolutely be new ai focused laws enacted just like there were internet focused laws once the Internet became very impactful. We simply have no idea how this will play out. Whatever new laws are passed will definitely not kill ai though since it’s a big business and us law makes will want ai companies to thrive so those services can be exported. People acting like ai will die for legal reasons are completely off base.
A) Not true. Many have been training models using various online data that that doesn’t belong to them, has not been licensed, and has been used without informed consent of the rights holders.
B) Terrible comparison. Music sampling is a grey area that is much more complex and dubious than you’re suggesting. There are instances in which sampling has been considered fair use, but outside of that there are strict laws around sampling. Finally, human music creation and sampling have very little in common with generative AI.
AI is here to stay. But the free ride of scraping every piece of information in human history without even a basic regard towards intellectual property or personality rights is unsustainable, unethical, and nowhere near the threshold for what can be considered fair use.
Once people start needing to own or license their training data sets the technology will be just fine, but costs will rise dramatically and the VC investment bubble is going to pop bigtime.
And payment sharing will most likely be a percentage of revenue and right now their biggest hurdle is just scaling, and it’s incredibly rare that a startup with huge demand completely fails because of scaling challenges. Once they scale their profit margin will be huge, they’d be able to do payouts and still profit. But don’t get excited about payouts, it’ll probably amount to pennies like it does on Spotify.
Ignoring the fact that training an AI is insanely transformative and definitely fair use, people would not get any kind of pay. The data is owned by websites and corporations.
If AI training was to be highly restricted, Microsoft and google would just pay each other for the data and pay the few websites they don’t own (stack, GitHub, Reddit, Shutterstock, etc), a bit of money would go to publishing houses and record companies, not enough for the actual artist to get anything over a few dollars.
And they would happily do it, since they would be the only players in the game and could easily overcharge for a product that is eventually going to replace 30% of our workforce.
Your emotional short sighted response kills all open source and literally gives our economy to Google and Microsoft. They become the sole owners of AI tech. Don’t be stupid, please. They want you to be mad, it literally only helps them.
Whatever, it was always some fly by night operation anyway. It’s a cool toy but all this revolutionary crap talk was just like when NFT’s showed up.
well I mean, chatGPT actually does have some real world use. personally, I find chatGPT more helpful than Stack Overflow when it comes to finding problems with my code
Pretty sure Microsoft will be happy to come save the day and just buy out the company.
it feels like, that was the plan all along
Of course it will, all these companies are funded by tech giants and venture capitalist firms. They don’t make money they cost money.
because i distrust this kind of technology in general and for sure it would add to the dystopian, anti-consumer, anti-workforce agenda big tech is currently enforcing. i work in desktop publishing and about 3/4 of jobs in that branche would be cancelled the moment ai could replace them for a fraction of the cost.
