this post was submitted on 15 Aug 2025
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I based my argument on actual numbers that can be looked up and verified. You "believe" that they "seem" to be doing something else. Based on what?
Their point is that those API prices might not match reality, and the prices may be artificially low to build hype and undercut competitors. We don't know how much it costs OpenAI, however we do know that they're not making a profit.
Sure, they might not. But he gives no basis for saying that other than what he "believes."
People in this community, and on the Fediverse in general, seem to be strongly anti-AI and would like to believe things that make it sound bad and unprofitable. So when an article like this comes along and says exactly what you want to believe it's easy to just nod and go "knew it!" Rather than investigating the reasons for those beliefs and risking finding out something you didn't want to know.
It is unprofitable, though.
OpenAI recently hit $10 billion in ARR and are likely to hit $12.7b by the end of the year, but they're still losing a lot of money. They don't think they'll make a profit until 2029, and only if they hit their target of $125 billion revenue. That's a huge amount of growth - 10x in 4 years - so I'm interested as to if they'll actually hit it.
Okay, make it sound worse and even more unprofitable.
Making their AI models cheaper to run (such as by requiring less electricity) is one step along that path to profitability.