Comment by bdangubic
16 hours ago
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?
16 hours ago
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…”
Your recollection is hazy. Bezos chose not to be profitable in order to grow the company, and reap greater rewards in the future. https://www.youtube.com/shorts/wjLs22dNOCE
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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?
I think you're saying that just running up huge losses is sufficient to create a successful company? But that you personally wouldn't want to run up huge losses? Not sure.
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To my knowledge Amazon never debt financed their ops like this
Amazon paid no dividends, that's their big debt financing.
Amazon did borrow money, for a long time.
Where did their financing come from then?
They had a cash-cow called AWS to keep the retail business afloat
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