Newsletter: OpenAI is a bad, unprofitable business, with most of its revenue coming from premium subscriptions, and only 27% ($1bn) coming from people licensing its technology, suggesting that the generative AI industry is much smaller than we thought. www.wheresyoured.at/oai-business/
OpenAI, a non-profit AI company that will lose anywhere from $4 billion to $5 billion this year, will at some point in the next six or so months convert into a for-profit AI company, at which point it...
I get the impression that I should be making free accounts and bots to make maximum utilization of them.
Waiting for OpenAI to hurry up and die already.
Sorry if this is a dumb question, but is there one big AI bubble now, or multiple bubbles that are somewhat distinct? Like, if OpenAI succumbs to the problems you describe, would that have implications for Musk's xAI and Tesla (now hyped as a robotics company)? Or vice-versa?
In the last week, OpenAI has lost their CTO and Chief Research Officer, all while trying to raise a $6.5bn+ round for a firm that loses $5bn/yr. They're so desperate they're raising from SoftBank, a VC famous for losing billions on terrible investments. www.wheresyoured.at/oai-business/
When the big business-sponsored glorified PR rag starts publishing doubts, you know you have a business in trouble bsky.app/profile/bloo...
As promising as AI may be, there's little chance it will live up to the hype, says Daron Acemoglu, a renowned professor at Massachusetts Institute of Technology
Daron Acemoglu wants to make clear right away that he has nothing against artificial intelligence. He gets the potential. “I’m not an AI pessimist,” he declares seconds into an interview.
I knew it was bad... but whew, that is something else. Even for SoftBank. (NB: I worked for a Softbank funded startup for two years... until they laid me off. Which was not terrible.)
They just told VC’s they want them to agree to exclusive investments, that’s not a red flag or anything
Great letter but I have a minor quibble when you say "one cannot run a business based on selling stuff you hope that people won't use" because I think gym memberships work that way :)