Comment on Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter
zaphod@sopuli.xyz 4 weeks agoYeah, the usual startup approach. Burn investor money to get into the market (or in this case create a market) by offering services below cost. Once they have enough users and their investors want their money back they’ll ramp up prices.
RedGreenBlue@lemmy.zip 4 weeks ago
Problem is they are competing with cheap web services like deepseek and local free models. Those alternatives are gonna become more popular when chatgpt starts charging.
They are spending like crazy in the hope for some inovation that will give them an advantage that others can’t copy for cheap. That is a very difficult thing to accomplish. I bet they will fail. That money ain’t coming back.
CheeseNoodle@lemmy.world 4 weeks ago
I’ve been looking into local models lately, mostly out of vague paranoia that I should get one up and running before it becomes defacto illegal for normal people to own due to some kind of regulatory capture. Seems fairly doable at the momeny though not particularly user friendly.
sobchak@programming.dev 4 weeks ago
They’re OK. It’s kinda amazing how much lossy data can be compressed into a 12GB model. They don’t really start to get comparable to the large frontier models until 70B+ parameters, and you would need serious hardware to run those.
CheeseNoodle@lemmy.world 4 weeks ago
Oh I mean with setup, like I can download ollama and a basic model fine enough and get a generic chat bot. But if I want something that can scan through PDFs with direct citation (like the Nvidia LLM) or play a character then suddenly its all git repositiories and cringey youtube tutorials.