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At the end of November, NVIDIA put out an internal memo (that was leaked to Barron's reporter
Some may be closer to break even, but openAI is tens of billions in the hole (something like 13.5 billion net loss in the first half of the year alone).
Sure, they could triple prices but then you lose a percentage of customers etc etc.
Yeah, I did realize that the break even ones I think largely are using OpenAI as part or all of their capacity, so they probably aren’t really break even for that reason - OpenAI is subsidizing them.
I appreciate how this newsletter/article does a solid job of highlighting some of the weird dealings we may be seeing that make these companies look more viable than they are (very much including these companies essentially subsidizing each other).
The big thing I keep coming back to is that there doesn’t seem to be a path to profitability for the LLMs. Chapo Trap House had an interview with Ed Zitron and he highlighted that some of the power users are pulling down over $50k in generation/prompt costs while spending $20 a month (or whatever, I’m spitballing the numbers).