Comment by popalchemist
12 hours ago
Because typically one expect a return on investment with that level of spending. Not only have they run at a loss for years, their spending is expected to increase, with no path to profitability in sight.
12 hours ago
Because typically one expect a return on investment with that level of spending. Not only have they run at a loss for years, their spending is expected to increase, with no path to profitability in sight.
not that I disagree but would it be fair to say though that we have seen this before where it turned out OK? say Uber? Amazon?
IIRC, current estimates are that OpenAI is losing as much money a year as Uber or Amazon lost in their entire lifetime of unprofitability. Also, both Uber and Amazon spent their unprofitable years having a clear roadmap to profitability. OpenAI's roadmap to profitability is "???"
I have lived through Amazon’s rags to riches and there was never a clear plan to profitability. Vast majority of people were questioning sanity of anyone investing in Amazon.
I am not saying OpenAI is Amazon but am saying I have seen this before where masses are going “oh business is bad, losses are huge, where is path to profitability…”
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To become the next Uber, do I just need to run huge losses?
I wouldn’t but path to success can clearly come from running 10-digit losses for a loooong time, no?
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To my knowledge Amazon never debt financed their ops like this
Amazon did borrow money, for a long time.
Where did their financing come from then?
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