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How OpenAI uses complex and circular deals to fuel its multibillion-dollar rise

(www.nytimes.com)
387 points reaperducer | 2 comments | 31 Oct 25 13:03 UTC | HN request time: 0.514s | source
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nova22033 ◴[31 Oct 25 14:59 UTC] No.45772702[source]▶
Related

https://www.theregister.com/2025/10/29/microsoft_earnings_q1...

Microsoft seemingly just revealed that OpenAI lost $11.5B last quarter

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guywithahat ◴[31 Oct 25 15:07 UTC] No.45772839[source]▶
It's incredible how Tesla used to lose a few hundred million a year and analysis shows would freak out claiming they'd never be profitable. Now Rivian can lose 5 billion a year and I don't hear anything about it, and OpenAI can lose 11 billion in a quarter and Microsoft still backs them.

I do think this is going to be a deeply profitable industry, but this feels a little like the WeWork CEO flying couches to offices in private jets

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lokar ◴[31 Oct 25 15:40 UTC] No.45773301[source]▶
Very few industries are “deeply profitable” absent the illegal abuse of monopoly power
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1. potato3732842 ◴[31 Oct 25 15:48 UTC] No.45773414[source]▶
Don't forget the perfectly legal use of legislation and bureaucratic precedent that gives them "soft/lossy monopoly" power or all but forces people do to business with them.
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2. lokar ◴[31 Oct 25 15:53 UTC] No.45773486[source]▶
OpenAI is pretty clearly pushing for complex government regulation as a way to protect their lead and prevent new entrants in the market.