> An innovative product with no means of significant revenue generation.

OpenAI has annualized revenue of $20bn. That's not Google, but it's not insignificant.

It is insignificant when they're spending more than $115bn to offer their service. And yes, I say "more than," not because I have any inside knowledge but because I'm pretty sure $115bn is a "kind" estimate and the expenditure is probably higher. But either way, they're running at a loss. And for a company like them, that loss is huge. Google could take the loss as could Microsoft or Amazon because they have lots of other revenue sources. OAI does not.

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Spooky23 3 hours ago | parent | prev | next [-]

Google is embedding Gemini into Chrome Developer Tools. You can ask for an analysis of individual network calls in your browser by clicking a checkbox. That's just an example of the power of platform. They seem to be better at integration than Microsoft.

OpenAI has this amazing technology and a great app, but the company feels like some sort of financial engineering nightmare.

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cmiles8 3 hours ago | parent | prev | next [-]

We live in crazy times, but given what they’ve spent and committed to that’s a drop in the bucket relative to what they need to be pulling in. They’re history if they can’t pump up the revenue much much faster.

Given that we’re likely at peak AI hype at the moment they’re not well positioned at all to survive the coming “trough of disillusionment” that happens like clockwork on every hype cycle. Google, by comparison, is very well positioned to weather a coming storm.

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XorNot an hour ago | parent [-]

Google survives because I still Google things, and the phone I'm typing this on is a Google product.

Whereas I haven't opened the ChatFPT bookmark in months and will probably delete it now that I think about it.

	▲	scrollop an hour ago \| parent [-]
		RIP privacy. Hello Stasi Google and its full personalised file on XorNot. Google knows when you're about to sneeze.

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cheald 3 hours ago | parent | prev | next [-]

And a $115b burn rate. They're toast if they can't figure out how to stay on top.

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nfRfqX5n 3 hours ago | parent [-]

Could say that about any AI company that isn’t at the top as well

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elAhmo 2 hours ago | parent | next [-]

You can say it about the AI companies, but Google or Microsoft are far from AI companies.

	▲	tartoran an hour ago \| parent [-]
		That's a good point. Google was sleeping on AI and wasn't able to come up with a product before OpenAI and they only scrambled to come out with something when OpenAi became all the rage. Big companies are hard to budge and move in a new direction.

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hbn 2 hours ago | parent | prev [-]

Google and Microsoft have existing major money printing businesses to keep their AI business afloat and burn money for a while. That's how Microsoft broke into gaming (and then squandered it years later for unrelated incompetence)

OpenAI doesn't have that.

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echelon 3 hours ago | parent | prev [-]

Every F500 CEO told their team "have an AI strategy ASAP".

In a year, when the economy might be in worse shape, they'll ask their team if the AI thing is working out.

What do you think happens to all the enterprise OpenAI contracts at that point? (Especially if the same tech layperson CEOs keep reading Forbes and hearing Scott Galloway dump on OpenAI and call the AI thing a "bubble"?)

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raw_anon_1111 2 hours ago | parent | next [-]

I will change a few lines of code and use another AI model?

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bangaladore 2 hours ago | parent | next [-]

Yeah- given all top AI models are more and more generalists, as time goes on there is less and less reason to use one over another.

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raw_anon_1111 2 hours ago | parent [-]

It’s really even easier than that. I already do all my work on AWS and use Bedrock that hosts every popular model and its own except for OpenAIs closed source models.

I have a reusable library that lets me choose between any of the models I choose to support or any new model in the same family that uses the same request format.

Every project I’ve done, it’s a simple matter of changing a config setting and choosing a different model.

If the model provider goes out of business, it’s not like the model is going to disappear from AWS the next day.

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echelon 2 hours ago | parent [-]

> Bedrock

This sounds so enterprise. I've been wanting to talk to people that actually use it.

Why use Bedrock instead of OpenRouter, Fal, etc.? Doesn't that tie you down to Amazon forever?

Isn't the API worse? Aren't the p95 latencies worse?

The costs higher?

	▲	raw_anon_1111 an hour ago \| parent \| next [-]
		Given a choice between being “locked in” to a major cloud provider and trusting your business to a randomish little company, you are never going to get a compliance department to go for the latter. “no one ever got fired for choosing AWS”. This is the API - it’s basically the same for all supported languages https://docs.aws.amazon.com/code-library/latest/ug/python_3_... Real companies aren’t concerned about cost as much as working with other real companies, compliance, etc and are comparing cost or opportunities between doing a thing and not doing a thing. One of my specialties is call centers. Every call deflected by using AI vs talking to a human agent can save from $5 - $15. Even saving money by allowing your cheaper human agents to handle a problem where they are using AI in the background, can save money. $15 saved can buy a lot of inference. And the lock in boogeyman is something only geeks care about. Migrations from one provider to another costs so much money at even a medium scale they are hardly ever worth it between the costs, distractions from doing value added work, and risks of regressions and downtime.
	▲	bangaladore an hour ago \| parent \| prev \| next [-]
		Bedrock is a lot more than just a standard endpoint. Also, the security guarantees.
	▲	bibimsz an hour ago \| parent \| prev [-]
		on less vendor to vet, one less contract to negotiate, one less 3rd party system to administer. you're already locked into AWS anyway. integrates with other AWS services. access control is already figured out.

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echelon 2 hours ago | parent | prev [-]

Are all of their sales their code gen model? And isn't there a lot of competition in the code gen space from Google and Anthropic?

I'd imagine they sold these to enterprise:

https://openai.com/business/

"ChatGPT for Business", sold per seat

"API Platform"

I could see the former getting canned if AI isn't adding value.

Developers can change the models they use frequently, especially with third party infrastructure like OpenRouter or FAL.

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riku_iki 3 hours ago | parent | prev [-]

> What do you think happens to all the enterprise OpenAI contracts at that point?

they will go to google if it wins the AI race.