posted in Technology
AI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure: A $20 billion setback.
futurism.com/future-society/ai-financial-bubble-openai-billions-failure
Replying to @eicker@lemmy.world
Since I haven’t seen it yet in this conversation, I think I need to bring some better context to what this article is claiming.
No, OpenAI did not assume they were making $70 billion. They’ve always known their existing number. In fact, that number IS what was reported to investors.
The $70 billion number is coming from a specific investor that wanted to adjust the definition of revenue to get a more “apples to apples” comparison to Anthropic’s numbers.
When these companies license their models to hypervisors (AWS, Azure, etc), those hypervisors take a cut. OpenAI does not report that cut as revenue. This investor wanted to add it back in to get a “total demand for AI tokens” number.
They are 2 completely different metrics coming from 2 completely different groups.
Replying to @1800doctorb@lemmy.world
Are you suggesting that The End is not, in fact, Near? And OpenAI is not about to collapse into bankruptcy, ending the entire AI ecosystem?
Replying to @UnderpantsWeevil@lemmy.world
Maybe I’ll go out on a limb and say this specific piece of news is not indication of the AI apocalypse. There are still plenty of things to be skeptical of long term, but this itself is not an indication of an inevitable crash.