This is more like reinvesting into the business as it's growing. It's a positive sum loop.

Nvidia makes money by selling to OpenAI. OpenAI makes money by selling a service to users that uses Nvidia. So Nvidia invests in the build out and expansion of the infrastructure that will use Nvidia.

This is a classic positive sum loop.

It's not that different than a company reinvesting revenue in growing the company.

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binarymax 4 days ago | parent [-]

But is OpenAI recouping this? I remember seeing reports a year ago that it was in the realm of $700M/mo in inference costs for them - are they earning that now?

Of course the strategy of taking a loss and reinvesting - but I don't see how OpenAI is making enough money to pay for all this, now or in the future.

	▲	lacy_tinpot 4 days ago \| parent \| next [-]
		It hasn't monetized any of its services. There are currently no ads. And it's not selling user data, well not yet. That's literally hundreds of billions worth of revenue. Just look at the options OpenAI has to generate revenue beyond subscriptions.
	▲	sssilver 4 days ago \| parent \| prev [-]
		How would you "see" that, given that OpenAI isn't public?