this post was submitted on 15 Aug 2025
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Or it might not. It would be a huge short term risk to do so.
As FaceDeer said, that we truly don't know.
OpenAI are not profitable today, and don't estimate they'll be profitable until 2029, so it's almost guaranteed that they're selling their services at a loss. Of course, that's impossible to verify - since they're a private company, they don't have to release financial statements.
That’s not what I’m saying. They’ve all but outright said they’re unprofitable.
But revenue is increasing. Now, if it stops increasing like they’ve “leveled out”, that is a problem.
Hence it’s a stretch to assume they would decrease costs for a more expensive model since that would basically pop their bubble well before 2029.
Revenue is increasing, but according to their own estimates, it has to increase 10x in order for them to become profitable.