> Why has nobody figured out how to be profitable?
From what I've seen claimed about OpenAI finances, this is easy: It's a Red Queen's race — "it takes all the running you can do, to keep in the same place".
If their financial position was as simple as "we run this API, we charge X, the running cost is Y", then they're already at X > Y.
But if that was all OpenAI were actually doing, they'd have stopped developing new versions or making the existing models more efficient some time back, while the rest of the industry kept improving their models and lowering their prices, and they'd be irrelevant.
> People would be lining up to pay OpenAI.
They are.
Not that this is either sufficient or necessary to actually guarantees anything about real value. For lack of sufficiency: people collectively paid a lot for cryptocurrencies and NFTs, too (and before then and outside tech, homeopathic tinctures and sub-prime mortgages); For lack of necessity: there's plenty of free-to-download models.
I get a huge benefit even just from the free chat models. I could afford to pay for better models, but why bother when free is so good? Every time a new model comes out, the old paid option becomes the new free option.
From what I've seen claimed about OpenAI finances, this is easy: It's a Red Queen's race — "it takes all the running you can do, to keep in the same place".
If their financial position was as simple as "we run this API, we charge X, the running cost is Y", then they're already at X > Y.
But if that was all OpenAI were actually doing, they'd have stopped developing new versions or making the existing models more efficient some time back, while the rest of the industry kept improving their models and lowering their prices, and they'd be irrelevant.
> People would be lining up to pay OpenAI.
They are.
Not that this is either sufficient or necessary to actually guarantees anything about real value. For lack of sufficiency: people collectively paid a lot for cryptocurrencies and NFTs, too (and before then and outside tech, homeopathic tinctures and sub-prime mortgages); For lack of necessity: there's plenty of free-to-download models.
I get a huge benefit even just from the free chat models. I could afford to pay for better models, but why bother when free is so good? Every time a new model comes out, the old paid option becomes the new free option.