Speaking of Uber, I believe it turned a profit the first time this year. That is, it never made any profit since its creation in whenever it was created.
Comment on ChatGPT In Trouble: OpenAI may go bankrupt by 2024, AI bot costs company $700,000 every day
merthyr1831@lemmy.world 1 year ago
I mean apart from the fact it’s not sourced or whatever, it’s standard practice for these tech companies to run a massive loss for years while basically giving their product away for free (which is why you can use openAI with minimal if any costs, even at scale).
Once everyone’s using your product over competitors who couldn’t afford to outlast your own venture capitalists, you can turn the price up and rake in cash since you’re the biggest player in the market.
It’s just Uber’s business model.
nodimetotie@lemmy.world 1 year ago
ineedaunion@lemmy.world 1 year ago
All it’s every done is rob from it’s employees so it can give money to stockholders. Just like every corporation.
some_guy@lemmy.sdf.org 1 year ago
The difference is that the VC bubble has mostly ended. There isn’t “free money” to keep throwing at a problem post-pan. That’s why there’s an increased focus on Uber (and others) making a profit.
flumph@programming.dev 1 year ago
In this case, Microsoft owns 49% of OpenAI, so they’re the ones subsidizing it. They can also offer at-cost hosting and in-roads into enterprise sales. Probably a better deal at this point than VC cash.
yiliu@informis.land 1 year ago
This is what caused spez at Reddit and Musk at Twitter to go into desperation mode and start flipping tables over. Their investors are starting to want results now, not sometime in the distant future.
voluble@lemmy.world 1 year ago
I don’t know anything about anything, but part of me suspects that lots of good funding is still out there, it’s just being used more quietly and more scrupulously, & not being thrown at the first microdosing tech wanker with a great elevator pitch on how they’re going to make “the Tesla of dental floss”.