Comment by OtherShrezzing
2 days ago
I don't see how this works, as the costs of running inference is so much higher than the revenues earned by the frontier labs. Anthropic and OpenAI don't continue to exist long-term in a world where GPT-5 and Claude 4.1 cost-quality models are SOTA.
With gpt5 I’m not sure this is true. Certainly openAI is still losing money but if they stopped research and just focused on productionizing inference use cases I think they’d be profitable.
But would they be profitable enough? They've taken on more than $50 billion of investment.
I think it's relatively easy for Meta to plow billions into AI. Last quarter their revenue was something like $15 billion. Open AI will be lucky to generate that over the next year.
meta net profit last quarter was over $18 billion so yea the big tech players definitely have a lot more runway
> if they stopped research and just focused on productionizing inference use cases I think they’d be profitable
For a couple of years, until someone who did keep doing research pulled ahead a bit with a similarly good UI.