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

(www.nytimes.com)
387 points reaperducer | 1 comments | 31 Oct 25 13:03 UTC | HN request time: 0.201s | 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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randomNumber7 ◴[31 Oct 25 15:10 UTC] No.45772879[source]▶
The winner takes it all, so it is reasonable to bet big to be the one.
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anonymousiam ◴[31 Oct 25 15:16 UTC] No.45772975[source]▶
The one what? What is the secret sauce that will distinguish one LLM from another? Is it patentable? What's going to prevent all of the free LLMs from winning the prize? An AI crash seems inevitable.
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1. Joel_Mckay ◴[31 Oct 25 15:52 UTC] No.45773477[source]▶
Silicon valley capital investment firms have always exploited regulatory capture to "compete". The public simply has a ridiculously short memory of the losers pushed out of the market during the loss-leader to exploit transition phase.

Currently, the trend is not whether one technology will outpace the other in the "AI" hype-cycle ( https://en.wikipedia.org/wiki/Gartner_hype_cycle ), but it does create perceived asymmetry with skilled-labor pools. That alone is valuable leverage to a corporation, and people are getting fired or ripped off anticipating the rise of real "AI".

https://www.youtube.com/watch?v=_zfN9wnPvU0

One day real "AI" may exist, but a LLM or current reasoning model is unlikely going to make that happen. It is absolutely hilarious there is a cult-like devotion to the AstroTurf marketing.

The question is never whether this is right or wrong... but simply how one may personally capture revenue before the Trough of disillusionment. =3