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Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter

101 points by stefano

by arcticbull

2 subcomments

Their revenue in the entire first half per the article was $4.3B, even if we assume it was backloaded in Q2 that’s a -500% profit margin. I’m very excited to review their S-1.
Like, for every dollar you give them they spend $5 to deliver the product. They’re selling $10 bills for $2. They seem to have taken the joke about making up losses with scale pretty seriously.

by jrepinc

0 subcomment

They should be loosing even more. This damaging corporate closed "AI" hype bubblr must bust before it does even more harm it is already doing to society

by GiorgioG

3 subcomments

by louiereederson

0 subcomment

this is bad reporting. microsoft's share of openai's cumulative loss over the lifetime of their investment is 11.5b. the microsoft share of openai's loss in the quarter was 4.1b, implying an 8b loss for openai itself assuming microsoft recognized 49% of openai losses per their ownership stake exiting the quarter. there may be some one time items that skew this, if not this is ain't good

by nojvek

0 subcomment

The big winners of AI will be hyperscalers. They got the compute, storage, customers, scale, ecosystems, 100s of billion to deploy.
OpenAI may implode and absorbed by MSFT. Anthropic may implode and be absorbed by Amazon.
Nvidia may not have the same demand of chips once the datacenters have been built out, but the hyperscalers are reaaaaaaally huge.
May as well say US economy depends on being the planet’s datacenter.

by ml-anon

2 subcomments

Contrast this with Google who made $100Bn profit last quarter and on the side has Gemini with 650MAU and does 7B tokens/minute. It makes it clear that neither MS nor OAI know what they are doing.