alt Hacker Newswrong. OpenAI is literally the only AI company with horrific financials. You think google is actually bleeding money on AI? they are funding it all with cash flow and still have monster margins.
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palmotea • yesterday at 6:37 PM
> You think google is actually bleeding money on AI? they are funding it all with cash flow and still have monster margins.
They can still be "bleeding money on AI" if they're making enough in other areas to make up for the loss.
The question is: "Are LLMs profitable to train and host?" OpenAI, being a pure LLM company, will go bankrupt if the answer is no. The equivalent for Google is to cut its losses and discontinue the product. Maybe Gemini will have the same fate as Google+.
OpenAI may be the worst, but I am pretty sure Anthropic is still bleeding money on AI, and I would expect a bunch of smaller dedicated AI firms are too; Google is the main firm with competitive commercial models at the high end across multiple domains that is funding AI efforts largely from its own operations (and even there, AI isn’t self sufficient, its just an internal rather than an external subsidy.)