$50 billion in revenue, but is there a profit?

He used OpenAI as an example: according to the figure he cited, its annualized revenue had reached $50 billion by the end of September. That suggests there are customers willing to pay for its models. But “annualized revenue” expresses the rate implied by revenue at that moment if it were maintained for a year; it is not a profit figure. That is where the second question lies. Tan pointed out that OpenAI is still losing money because it spends heavily on training models. He also observed that a substantial share of the revenue AI labs earn from businesses comes from pilot projects. A pilot can show interest and help test a specific application. It does not yet guarantee that the customer will maintain that spending for years, increase it, or that the business will turn a profit after covering its costs. His warning, therefore, has a precise scope. Revenue growth points to a real opportunity; it is not enough to determine the long-term profitability of AI labs.

Full episode: https://youtu.be/FRVL97RbAkc

🤖 AI-generated content: the script, voices, and images in this episode were produced using artificial intelligence tools.

#Shorts