This is a most excellent place for technology news and articles.
cross-posted from: https://piefed.world/c/tech/p/1198508/openai-losses-increased-nearly-8x-in-2025-with-spending-hitting-34-billion
A loss is not an imbalance of debits and credits, but how much of those debits end up in expenses and the credits end up in revenue.
DR Expense $1,000 CR Cash $1,000
With no other activity in a period, that is a $1,000 loss funded by cash.
DR Expense $1,000 CR Loan $1,000
Is a loss funded by borrowings.
DR Sales Discounts $1,000 CR Sales Revenue $1,000
Is 0 profit/expense as the sale was marked down to 0 (assuming no cost of sales).
Exactly. My terminology might not be correct, but my point is that their books can be perfectly balanced, and they can also be losing a shit-ton of money, as long as investors keep shoveling money in.
Yeah the terminology
the books are balanced, there are just more debits than credits
is the opposite of everything discussed above.
A loss is not an imbalance of debits and credits, but how much of those debits end up in expenses and the credits end up in revenue.
With no other activity in a period, that is a $1,000 loss funded by cash.
Is a loss funded by borrowings.
Is 0 profit/expense as the sale was marked down to 0 (assuming no cost of sales).
Exactly. My terminology might not be correct, but my point is that their books can be perfectly balanced, and they can also be losing a shit-ton of money, as long as investors keep shoveling money in.
Yeah the terminology
is the opposite of everything discussed above.