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tempest_ 7 hours ago

Once one competitor sees the ratchet turn they will follow suit.

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marginalia_nu 7 hours ago | parent | next [-]

Yeah, once competitors investors see OpenAI making a profit, and competitors not, they ask why.

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baggachipz 7 hours ago | parent [-]

> OpenAI making a profit

I don't think anyone has to worry about that.

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marginalia_nu 6 hours ago | parent [-]

Don't underestimate just how much money you can make off funneling visitors to ads at scale. It's basically Google's entire business model.

If OpenAI plays their cards right, they can definitely end up in a similar position. Yeah a lot of programmers would probably pony up for Claude, but every lazy high schooler in the world would gladly hear about Raid: Shadow Legends to have ChatGPT do their homework for them.

Don't get me wrong it's definitely sucks, but man is it ever a profitable way to suck.

	▲	baggachipz 6 hours ago \| parent [-]
		This assumes that ads at google's or facebook's level would get them anywhere close to profitability. OpenAI's costs of doing business are only accelerating, all while burn rate continues to get worse. I have no doubt that selling ads will bring in a lot of revenue, but it'll be dwarfed by the numbers OpenAI needs to stop hemorrhaging cash every quarter. The great irony is that the more success OpenAI has in gaining users, the more money they lose at an ever-increasing rate. Lose on every sale, and make up for it in volume!

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simianwords 7 hours ago | parent | prev [-]

this won't work because there are way too many open weight alternatives that are run independently - just go to openrouter.