Better Offline Why OpenAI Is A Terrible Business
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Oct 9, 2024 OpenAI's valuation might be sky-high, but beneath the surface lies a troubling financial reality. The discussion highlights the disconnect between massive investments in generative AI and disappointing results. Concerns about unsustainable pricing models and projected losses paint a bleak picture for the company's future. As major tech players jump into the AI arena, questions arise regarding OpenAI’s viability and ethical implications in a rapidly evolving landscape.
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OpenAI's Unsustainable Business
- OpenAI's business model is unsustainable, losing billions annually.
- They require constant fundraising and their costs increase with usage.
SoftBank's Investment
- SoftBank, known for poor investment decisions, invested $500 million in OpenAI.
- Their founder, Masayoshi Son, believes he's destined to create digital superintelligence.
OpenAI's Dependence and Scaling Issues
- OpenAI's reliance on Microsoft's Azure cloud and Microsoft's access to their research creates dependence.
- Their technology gets more expensive as it scales, unlike comparable cloud services.