It Costs So Much to Run ChatGPT That OpenAI Is Losing Money on $200 ChatGPT Pro Subscriptions
It Costs So Much to Run ChatGPT That OpenAI Is Losing Money on $200 ChatGPT Pro Subscriptions
While trying its hardest to become profitable, OpenAI is still falling massively short — and is even losing money on its pro subscriptions.
If you can't even make a buck torching the planet so people don't have to write their own emails, how do you live? 
This might be true but I also feel like it's a page from the Red Lobster marketing playbook:
"Oh no, this unlimited shrimp deal is too good!!!1! It's bankrupting the company!! Oh no, don't come eat our shrimp!!"
Repeat in a few months, etc.
Yup. It was never the shrimp, it was the fact that the hedge fund was stripping the entire biz. They sold all the property to themselves and had each restaurant rent out the space. Hedge fund made a profit on their purchase just in time to close down all restaurants. There probably is something like that going on here.
I think RL also had to purchase the shrimp from the parent company for unfavorable prices.
$3.7B revenue
$5.0B expensesIs This Loss
Pls crash pls crash AI crash now pls I hate how capitalism uses AI
From your beak to God's ears
isnt it entirely possible that would crash the world economy?
"This is good for Bitcoin" - Cryptochuds, somehow
The world economy is going to crash within the next few years anyway, it's only a matter of which domino falls first.
It constantly blows my mind that we could turn off just one type of treat machine for a year, and permanently end food insecurity globally. Same for preventable and curable diseases.
permanently end food insecurity
the desperation of the reserve army of labor is a critical part of keeping wages down 
Why are we doing this then????
I hate capitalists so much. It’s not just that they’ll do anything to maximize profits. Honestly that would be much easier to deal with than what they actually do.
In reality they’re really fucking stupid as well as being selfish. It’s why they strip the copper out of the walls rather than allow a profitable company to just continue. It’s why they burn their profits chasing dream products that will never turn a profit and have immense costs.
Like holy shit just go do something else with that money! Start a restaurant! Yes almost all restaurants fail but that still gives you a better chance of turning a profit than this!
We're doing it because line must go up. The entirety of white western society is built solely and completely around "line go up" and this is making line go up so it must continue
The entire tech industry is just a casino for VCs and they're gambling with the future of all life on earth
Start a restaurant!
as you acknowledged at the beginning of your comment: they don't really care about a business being strictly profitable, they care about it being more profitable than what everyone else is doing
“[Capitalists] act as if they are being chased by a bear,” wrote Zhang Lin, a Beijing political commentator, in response to these comments. “They are powerless to control the bear, so they are competing to outrun each other to escape the animal.” [source]
It's the singularity cult, capital is long dead and robot feudalism is the only way out for them.
I think this is it. This is not the behavior of the Rational Capitalist™ this is cult fanaticism.
Yeah, this is the biggest question for all the LLMs. When are they actually going to turn a profit and how?
They seem to be doing the Uber model of flooding the market to then hike prices, but I don't see how people are going to be able to afford it. I guess it is just training them to then sell them to companies?
I guess it is just training them to then sell them to companies?
The company I work for is pressuring every single department to onboard "AI", and there is so much talk of "training" the LLMs we will buy to suit our needs. I imagine lots of other companies are demanding the same of their employees right now
Lt. Broccoli at Quark's holosuite.
Uber also just burned money forever before they price hiked. I think again, this is just gaining market share. Make sure there's few people left who can write or research or do art because it was all done by the "cheap" machine and then you can hike the prices and have a near monopoly on it.
I'm not sure that'll pan out though. Nobody drives a taxi as a hobby. People do create art as a hobby, or write, or even do research.
Where it might pan out* is clerical work. LLMs will never be able to do actual work unsupervised. But if you can fire 100+ laywers in favor of one guy who fixes the LLM's mistakes, then its probably profitable. Art, writing and creative works in general are a red herring. It's a promise to the masses that they'll be able to conjure whatever entertainment they want, meanwhile the company is working to rugpull them out of what social mobility still exists.
*and even then I can't imagine there won't be a massive bubble burst incoming. The current business model loses money. Fullstop. LLM doesn't seem a good fit for a consumer good.
They are probably lying to make their $200 Pro subscription seem more appealing
They have to be rolling in the cost of buying new servers or something.
No way it costs 1k in electricity, cooling, etc.
It's absurd how wasteful and resource expensive ChatGPT is considering how little it can actually do.
"You workers are getting so entitled demanding a living wage! You better learn your place or we'll replace you with AI"*Doesn't raise wages and uses an extremely wasteful and expensive AI anyway*
See, using ChatGPT to produce Time Traveling Marx x Sonic mpreg fanfic is Praxis.
I sure wish I didn't have to write my own emails
What you think you need: AI to write emails for you
What you actually need: a return to the slower pace and more literary style of the 19th century so you have more opportunities to express yourself creatively: "Dear Sir: It pains me to inform you that the instructions that you have provided for my calculating machine are producing erroneous projections. For my business to proceed as planned, I must have a remedy posthaste."