OpenAI CEO Sam Altman said in a podcast interview that "it's quite terrible" for people to have RAM in their own PCs when it could go into AI data centers.
Only a moron would think OpenAI was ever turning profitable.
There were two possible ways,
Subscription prices rose to a point no one would be interested to pay.
Inference got so cheap, that 98% of all use cases could be run by open weight models on local machines
In both situations OpenAi and Anthropic lost.
The bull case has been a bear case since the beginning. Both companies will most likely stay alive, but will eventually have their costs turned down as they’re going to be bought out by some of the mastodonts.
The best possible scenario for either of them, is if a government want a frontier lab and decides to buy one already functioning. Rather than having their universities start from scratch
Only a moron would think OpenAI was ever turning profitable.
There were two possible ways,
Subscription prices rose to a point no one would be interested to pay.
Inference got so cheap, that 98% of all use cases could be run by open weight models on local machines
In both situations OpenAi and Anthropic lost.
The bull case has been a bear case since the beginning. Both companies will most likely stay alive, but will eventually have their costs turned down as they’re going to be bought out by some of the mastodonts.
The best possible scenario for either of them, is if a government want a frontier lab and decides to buy one already functioning. Rather than having their universities start from scratch
They die if we use local models.
The second profit condition would be it got so cheap they could make bank on data collection