f6v parent
You’re saying this as if you’ve seen their books and know the pricing is sustainable.
Based on what Altman says and leaked reports, OpenAI is actually losing money on every new user. Unlike traditional software, maintaining a SOTA AI service doesn't scale. The conundrum he faces is he can either quantize models and slash R&D to try to turn a profit now but lose the SOTA race, or keep pumping money and hope the rest bleed out. He's opted for the second, having raised 10B in 2023, 6.6B in 2024 and reports of another raise in 2025. He's probably trying desperately for the middle ground where an explosion of high price subscriptions replacing workers massively boost his revenue. So he's also reportedly projecting revenue 4x to 13B this year.
This is an accurate summary of OpenAI, and makes it more likely that Baidu's model is being priced well below cost
I wouldn't necessarily think so. There's still enormous room for quantization and hardware optimization, which China has proven to be world class at. And a lot of spend is really on R&D. For the same reason I believe if OpenAI waned to they could break even in a year