The major reason for that is, they are pushing hard on capital expenditure (one-time training costs), building their own silicon and people costs (they have between 4000-6000 employees). If OpenAI really wanted to be profitable today, I am sure they can do it, but they would no longer be competitive.

In other words, we're NO LONGER looking at the scenario where their unit economics was out of whack and lopsided against profitability. The AI frontier behemoths of today (OpenAI, Anthropic and Google) are very well positioned for strong profitability unless Chinese AI companies start gaining more market share in North America.

Yet, I don't think the pace of competition is sustainable. Once there is stronger pressure on them for profitability, we'll see them slow their moonshots, cut costs and focus more on the core business. Maybe that is what we are starting to see now.