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Docs: OpenAI and Anthropic have projected profitability to investors with and without training costs, and report inference costs exceeding half of their revenue

Silicon Valley's hottest startups have the same challenge: funding giant computing costs  —  OpenAI and Anthropic

Wall Street Journal

Discussion

  • @naveengrao Naveen Rao on x
    Something else about this news struck me...we typically think of companies as becoming self-sustaining entities bc they build a product that satisfies some demand. What if that demand is ONLY to be part of building AI tech? As in, can continual investment be a self-sustaining
  • @shiraovide Shira Ovide on bluesky
    Every generation of start-ups has its own fuzzy math.  —  Groupon had ACSOI (earnings excluding very high marketing costs)  —  WeWork had a similar “community adjusted Ebitda”  —  I guess OpenAI and Anthropic have earnings excluding training costs (which are very very high) www.w…
  • @morqon Morgan on x
    look at openai's research compute spend as a share of revenue and the huge increase in spend is matched by a huge increase in revenue [image]