OpenAI's Revenue Growth Is Slowing Just as It Needs to Accelerate
What Happens If OpenAI Dies?
Ed Zitron argues that OpenAI's survival is in doubt. Despite a $7 billion share buyback, the company lost its COO and CRO in the same week, and its revenue growth is decelerating. With Anthropic poised to IPO first, OpenAI's path to going public looks bleak. Zitron dissects the misleading use of annualized revenue and highlights the company's massive losses, concluding that OpenAI's business model is unsustainable.
It's always a bloody could or will or might with these fucking companies, and it's astonishingly bad journalism to see it as an “objective” choice to vaguely say that a company should not be evaluated based on its actual business but on some theoretical business that they might build in the future where the economics are completely different.
- bogzz
Zitron is far more negative when it comes to the utility of LLMs than I am, but dear God would it be satisfying to watch him be proven right on the financials.
His as-of-late frequent appearances on Bloomberg, CNBC, and Scott Galloway's podcast, as well as his collaborations with Ed Elson from Galloway's podcast must feel like a great vindication for him already. Quite impressive for a person who is self-taught in that area, just over the past two years.
edit: And, of course, the post is flagged. We must bury our heads in the sand again.
- WarmWash
What happens if people realize Ed Zitron has been rage farming to harvest subscription dollars for a few years now?
- PLenz
Probably a cambrian explosion of new startups. New stars are made of the refuse of old ones.
- paxys
Not commenting on the rest of the piece but why is everyone assuming that OpenAI’s executive departures are all voluntary? Sam Altman has shown plenty of willingness to clean house among the top ranks in the past. He isn’t going to shy away from firing a revenue officer if targets aren’t being met.
- throwaw12
Stock market might dip 20%+, because OpenAI is a large buyer of GPUs, RAMs, servers and disks, every chip company will be impacted from removing huge customer from their revenue.
then flywheel effect might kick off and impact carriers and construction companies building data centers and delivering things there.
which impacts investor trust and they might start pulling their money from AI companies, which in turn, they either need to increase prices or downsize their efforts