Readit NewsOpenAI's revenue is $13bn with 70% of that coming from people just spending $20/mo to talk to ChatGPT. Anthropic is projecting $9bn in revenue in 2025. For nice cold splash of reality, fucking Arizona Iced Tea has $3bn in revenue (also that's actual revenue not ARR)
You might have 100x more demand than you can get capacity for, but if that 100x still puts you at a number that in absolute terms is small, it's not very impressive. Similarly if you're already not profitable and achieving 100x growth requires 1,000x in spend, that's also not a recipe for success. In fact it's a recipe for going bankrupt in a hurry.
And we are profitable on our AI efforts while adding massive value to our clients.
I know less about OpenAI’s economics, I know there are questions on whether their model is sustainable/for how long. I am guessing they are thinking about it and have a plan?
AGI would be more impactful of course, and some use cases aren’t possible until we have it, but that doesn’t diminish the value of current AI.
Nobody knew that scaling transformer architecture would lead to the emergent intelligence we see today. Among other things, OpenAI did R&D for years on that. Also the only situation where this could true is if Google knew that LLMs could lead to this intelligence and decided to not make it happen, (along with every other tech company now that is furiously trying to catch up to OpenAI), which is absurd.
Microsoft is the de facto controlling shareholder in OpenAI. They provide all the money, compute, and backing, and have full access to the models. If OpenAI collapsed tomorrow, Microsoft would absorb its key employees (as they almost did during the board debacle) and everything would continue under the Microsoft umbrella. “OpenAI” is just a shinier name for work that is being done under the near-total control of Microsoft.
It’s very likely they’ll bounce back. I’d rather OpenAI continue to innovate and push the industry forward as they have been. Haven’t seen much of that from Microsoft, so heavily disagree with you there. Prefer to focus on the actual product of the company not the personalities of the people there or armchair assumptions on the vibes of the culture.
To my understanding, the idea behind the heat death of the Universe is that nothing interesting happens anymore, not that there is absolutely nothing.
2. The heat death of the universe does not mean one gigantic black hole. I’m just a hobbyist but my understanding of the theory is that black holes will continue to form, but through Hawking radiation, they eventually radiate out all their energy until it is all dispersed, ultimately leading to uniformity across the entire universe, max entropy, where “work” can no longer take place.
(It is an interesting question then whether information is actually destroyed through Hawking radiation?)
The #1 product of nearly every AI company is hope, hope that one day they will replace the need to pay real employees. Hope like that allows a company to cut costs and fund dividends ... in the short term. The long term is some other person's problem. (Ill change my mind the day Bill Gates trusts MS copilot with his personal banking details.)
Cal is a consumer of AI - interesting article for this community, but not this community. I thought hacker news was for builders and innovators - people who see the potential of a technology for solving problems big and small and go and tinker and build and explore with it, and sometimes eventually change the world (hopefully for the better). Instead of sitting on the sidelines grumbling about that some particular tech that hasn’t yet changed the world / met some particular hype (yet).
Incredibly naive to think AI isn’t making real difference already (even without/before replacing labor en masse.)
Actually try to explore the impact a bit. It’s not AGI, but doesn’t have to be to transform. It’s everywhere and will do nothing but accelerate. Even better, be part of proving Cal wrong for 2026.