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OpenAI could be on the brink of bankruptcy in under 12 months, with projections of $5 billion in losses
(www.windowscentral.com)
this post was submitted on 28 Jul 2024
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350,000 servers? Jesus, what a waste of resources.
just capitalist markets allocating resources efficiently where they're need
It's a brand new, highly competitive technology and ChatGPT has first mover status with a trailer load of capital behind it. They are going to burn a lot of resources right now to innovate quickly and reduce latency etc If they reach a successful product-market-fit getting costs down will eventually be critical to it actually being a viable product. I imagine they will pipe this back into ChatGPT for some sort of AI-driven scaling solution for their infrastructure.
TL;DR - It's kind of like how a car uses most of it's resources going from 0-60 and then efficiencies kick-in at highway speeds.
Regardless I don't think they will have to worry about being profitable for a while. With the competition heating up I don't think there is any way they don't secure another round of funding.
Facebook is trying to burn the forest around OpenAI and other closed models by removing the market for "models" by themselves, by releasing their own freely to the community. A lot of money is already pivoting away towards companies trying to find products that use the AI instead of the AI itself. Unless OpenAI pivots to something more substantial than just providing multimodal prompt completion they're gonna find themselves without a lot of runway left.