1/5
@kimmonismus
OpenAI plans to be profitable ~2029. It can be assumed that OpenAI will be a long-term investment for investors in the VC sector.
In addition, AI is expected to be an excellent deal, especially when agents are established and then billed on a price per use basis similar to SaaS.
In other words, the fact that OpenAI is currently losing $5b should not be overdramatized. As I said before, losses in the venture capital space are completely in line with the norm.
[Quoted tweet]
openai’s cost structure
2/5
@Ed_AgentDev
Losses in VC space are normal, agreed. But $5b is a massive amount to swallow. I'm curious, what's the plan to turn it around by 2029?
3/5
@kimmonismus
On the one hand to drive the prices up to $44 per person and for enterprise up to $1000 for o1 models. That will certainly help.
4/5
@SachGPT23
Well it depends; the market is in state of fragmentation but a shakeout is likely to occur, leading to some perennial oligopoly structure, due to the high FC to compete in this space. If tacit-collusion becomes pervasive as is typical, maintaining a price level (given the cost structure) that is amicable across other players, you have a business with sustainable profits.
5/5
@NoesisML
The real takeaway here is that OpenAI’s losses aren’t driven by inference costs
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