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lkeyyesterday at 7:41 PM1 replyview on HN

In the sense that OpenAI had ~$2.5 billion of revenue 2024 but likely spent ~$3.8 billion just on inference.

Meaning they lose 50 cents for every dollar they spend to send you a token, more if you are a free user. This discounts employees, CapEx, real and imagined (1.4T), overhead, and training (subsidized by M$oft).

Thus, if you have a way to turn every token they give you back into USD, even at a discounted rate, you can and should rob them blind before the well dries up.


Replies

gruezyesterday at 7:58 PM

That doesn't mean the cost is negative, it means the profit is negative for openai.