It’s a weird business where everyone is offering an environmentally unsupportable service at below cost, hoping to outlive the competition.
Market share of a negative profit market.
It worked for netflix and the steaming services. Now terrestrial (cable) is dead and adsupported streaming tiers have returned lol.
So OpenAI is becoming more profitable?
AI is becoming a commodity. Companies with such high burn rates will have a hard time staying alive.
Especially with open weights models available from cloud AI providers.
Yeah the open weight models are getting good enough that a lot of people can just host their own for most tasks.
not a gambling man but if i was… https://polymarket.com/event/sam-altman-in-jail-by
For those who didn’t read past the headline: OpenAI is still growing, but competition is growing faster.
So, people are falling for Anthropic’s marketing scheme?
Personally, I find myself using the Chinese alternatives more and more as they are just way cheaper.
I switched to opencode and deepseek
Can’t be Europeans as they’re locked out from the new models LOL
As is everyone?
This isn’t good news. This just means now the market is fractured with many AIs instead of just one. If anything it’s just a sign that more people are using AI.
Call me when the headline is “ChatGPT shuts down”.
It is
Less customers same expenses
More chances of them going bankrupt
If they do it’s probably going to be Musk that buys the corpse.
This just means now the market is fractured with many AIs instead of just one.
Fundamentally this feels like it should be a good thing…
But it does feel like this just accelerates things.
If OpenAI’s numbers are true, more usage means more cash burn. And more competition means companies have to fight to offer the best deals to customers, meaning more cash burn.
Now if the market was reasonable…
The market shouldn’t even exist.
Imagine if I offered a service to connect people with local serial killers. Then after some time more people started offering that service.
Would you say “Well hopefully competition will drive down prices at least”?
Yeah big AI needs to not be a thing. Small, focused, FOS, and local AI seems like a future with an okay compromise. I say as a very anti-AI person, but for those that use AI, that seems to be what they’re doing, in my vicinity.
It all still burns energy at a time when we should be reducing our energy consumption. And for mainly frivolous things which we could have done without AI aynway.
