alt Hacker NewsI can generate $20 billion in ARR this year too! I just need you to give me $100 billion and allow me to sell each of your dollars for 0.2 dollars.
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This analogy only really works for companies whose gross margin is negative, which as far as I know isn’t the case for OpenAI (though I could be wrong).
It’s an especially good analogy if there is no plausible path to positive gross margin (e.g. the old MoviePass) which I think is even less likely to be true for OpenAI.
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very clever! I hadn't seen anybody make this point before in any of these threads /s
obviously the nature of OpenAIs revenue is very different than selling $1 for $0.2 because their customers are buying an actual service, not anything with resale value or obviously fungible for $
Can you? What are you selling? Who are you and why should I believe in you? What would I get in return?
It's a fun trope to repeat but that's not what OpenAI is doing. I get a ton of value from ChatGPT and Codex from my subscription. As long as the inference is not done at a lost this analogy doesn't hold. They're not paying me to use it. They are generating output that is very valuable to me. Much more than my subscription cost.
I've been able to help setup cross app automation for my partner's business, remodel my house, plan a trip of Japan and assist with the cultural barrier, vibe code apps, technical support and so much more.