Contrast this with Google who made $100Bn profit last quarter and on the side has Gemini with 650MAU and does 7B tokens/minute. It makes it clear that neither MS nor OAI know what they are doing.
Contrast this with Google who made $100Bn profit last quarter and on the side has Gemini with 650MAU and does 7B tokens/minute. It makes it clear that neither MS nor OAI know what they are doing.
Alphabet (Google) made $102.35 billion in revenue last quarter, not $100bn in profit.
Also most of it is from ads, not from their AI or cloud products. I wonder when OpenAI will start to serve ads as much as Google does, they certainly have people's attention a lot of times throughout the day looking at how people around me use their services.
I find it funny that people think OAI can enter the ad business and just compete easily with Google, given the years Google has had investing in research etc to build the behemoth it is today in the market for online advertising.
By the time OAI even figures it out, they will have run out of funding. All they can do now is prop up usage numbers to signal to investors that their market position is durable.
Not a single AI company is cash flow positive, not even Google's AI part of the business.
It's unclear if they even can be, since commodity models you can use for free catch up to them pretty close to yearly.
It's hard to say with Google as you don't know how much of the revenue was increased by having the AI stuff. The CEO sounds upbeat:
>We are seeing AI now driving real business results across the company. We delivered our first ever $100 billion quarter. Five years ago, our quarterly revenue was at $50 billion. Our revenue number has doubled since then, and we are firmly in the generative AI era.
They also do a lot of different stuff in AI, like they make their own TPUs and "Anthropic recently shared plans to access up to 1 million TPUs". So some of the business is a bit Nvidia like.