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2 days agoBut their operation cost is 5 billions per year, they plan to raise 6.5 billions from microsoft, apple and nvidia this year and they have not raised it yet. If their model fail next year and sales not happen will shareholders of big 3 pay 6.5 billions in 2026. There were couple companies that raised such amount of money at start like for example Docker Inc. Where is Docker now in enterprise ? They needed to change licensing model to even survive and their operation cost is just storage of docker containers. I doubt openai will survive this decade. Sam Altman is just preparing for Microsoft takeover before the ship is sunk.
Docker fired 80% of their staff and went almost bankrupt, they were literally dead company and they make like 100 millions a year right now after 13 years. Docker inc was founded in Oct 2011. They got $435.9M founding according to crunchbase so they were valued at around 4 billions.
https://sacra.com/research/docker-plg-pivot/
https://www.crunchbase.com/organization/docker
Open AI wants like a magnitude higher 6.5 billion for a year. They are valued at around 100 billions but they are nowhere where docker was when they were receiving big money. They want to be a consumer product and docker wanted to be consumer product and it failed. Github wanted to be consumer product and they got acquired by microsoft before they went bankrupt.
Just from this month they trying to sell it as much as they can.
OpenAI COO Says ChatGPT Passed 11 Million Paying users.
https://www.theinformation.com/articles/openai-coo-says-chatgpt-passed-11-million-paying-subscribers
OpenAI hits more than 1 million paid business users.
https://www.reuters.com/technology/artificial-intelligence/openai-considers-pricier-subscriptions-its-chatbot-ai-information-reports-2024-09-05/
6.5 billion they seeking divided by 11 million customers it’s 590 dollars per year and they charge 20 bucks per month that’s 240 dollars per year before taxes. They are loosing roughly 350 dollars per customer so they need at least double number of customers next year. Who is willing to pay 240 dollars per yer for technology that tells them what to do ? If I’m told what to do it’s called job and actually my employer is paying me for that not other thing around.
This is just another corporate product nobody wants so corporate will buy it and they will need to pay like what 6500 dollars per year to use it, given adoption of 1 million corporate users. Who is willing to pay 6500 per year per user for technology that needs such computing power to stay relevant that microsoft needs to revive power plant to cut costs.
https://www.msn.com/en-us/money/other/microsoft-wants-three-mile-island-to-fuel-its-ai-power-needs/ar-AA1qUc5g
This won’t survive.