Remix.run Logo
creddit 5 days ago

Threads did grow very fast at launch as Meta leveraged IG to supercharge growth but has fewer DAU than ChatGPT does today so it does seem a bit odd to suggest Threads is growing faster than ChatGPT or even has.

In fairness to your point, "fastest growing consumer product ever" isn't well defined per se. If a consumer product gets 1 sign up and then 1e-32 seconds later it gets a second, maybe THAT'S the "fastest growing ever".

> On the other hand, OpenAI’s ChatGPT has more intense pressure from competitors, isn’t making any money, and costs are still rising for its operation.

This isn't the first time someone has suggested that the social media space is low competition but I always think it's completely incorrect. Threads competes with IG, FB, WA, Snap, TikTok, Bluesky, X and many more. All are well funded and most have comparable or greater DAU.

In terms of making money, Threads only recently began to show ads at all. During this time, Threads has also been cannibalizing IG engagement. It's quite UNLIKELY that IG is making very much money and even less likely that on the whole has been a positive revenue tailwind for Meta even with the actual revenue they are starting to book. Meanwhile ChatGPT, which apparently isn't making any money, has a revenue run rate of ~$12B.

> I don’t know where you’re getting the idea that it’s the “fastest growing consumer product ever” and “revenues are like super exponential” as it’s demonstrated repeatedly that OpenAI has yet to turn a profit or even meaningfully dent their burn rate

Revenue != profit. Their revenue is growing unbelievably fast. Their user base has and is still growing extremely fast. Current revenue run rate ~$12B which is >3X 2024 total revenue. That is enormously fast especially at that already sizeable ~$4B base!

That their losses are so large is in large part a choice as they provide a huge amount of inference for free today. The same argument you're making about losses is the same tired one people made about FB, Uber, Amazon and plenty of other high growth companies all of which are highly profitable today.

Anyone sitting around arguing that LLMs are a low-demand product that "hardly anyone wants" is one or more of an idiot, willfully ignorant, highly misinformed by a trusted source or actively spreading bollocks.