This is a most excellent place for technology news and articles.
The fundamentals get worse and worse the closer you look.
Like for example, so much of their opex is filed under capex. Graphic cards & related assets degrade over time but are often listed as one time purchases, compute time is often evaluated as one time expenses but the models need to be retrained to improve over time, etc.
I desire the collapse so much.
I own nothing of value, I lose nothing.
Good piece of financial advice. You're assets can't lose value if you have none ;)
As a person with assets, I will gladly watch them burn together with AI. Can we be done with this tomfoolery already please.
Yep, no way they're ever going to be profitable.
Let it burn, baby! I have no money, it's gonna be great having all you guys around!
I wonder if the IPO will even happen.
Teeter harder, I need to upgrade my graphics card.
I just want some RAM, man. :(
I don't actually need more RAM but I'm going to buy more anyways just in celebration.
slow down, there's going to be enough for everyone once the AI hype dies and they're scaling back (probably)
And I wanna build a gaming PC!
The $20B difference is based on an accounting fraud. $50B vs $70B is like if GM would count the total of what buyers pay for cars ($70B) instead of their real revenue ($50B) of what their dealers pay them. Monumental fraudster BS came out overnight to resume the bubble frenzy though.
This feels like a nothing burger. It either won't affect them or the government will bail them out.
With the amount of money being spent on AI 20 Billion is a drop in the ocean.
Hopefully, I will be able to pick up x4 RTX Pros and 2TB of DDR5 RDIMM after ClosedAI dies. I would like to run local open models like Kimi.
Qwen Next has been helpful in getting an old game to run on modern Windows - getting the graphics to render properly, adding support for Xbox shoulder triggers, and so on. While I probably could flounder my way through, just having the AI handle things as I sleep overnight is much appreciated.
The more AI power that individuals can own, the better it is for the everyday person.
Kimi sucks, run GLM or Deepseek if you manage to get that setup. Both of those have done more for me than Kimi with its expensive subscription plan
Basically, the AI lab told backers to expect revenues approaching $50 billion — far shorter than the explosive $70 billion number reported previously.
Though that $70 billion figure was also based on leaked investor memos, OpenAI wasn’t in any hurry to deny it, digging itself into a $20 billion hole.
So they told investors they'd make $70b and now they're bringing down the forecast to $50b . $50b is still insane, that's more revenue then any other software company except Microsoft (and probably anthropic), next closest is Salesforce with $41b, and Salesforce built that revenue over decades. Open AI finished 2025 with $13b in revenue, that's nearly 4x growth in a year on more then 10 billion in revenue, that has never been done before.
Idk if this is a sign of a bubble collapsing just because it's record setting growth and revenue aren't as explosive as they initially said. It is still very much explosive, but more a fission bomb then an h bomb. It seems the market agrees, Nvidia is down ~1% on this news, but still up 5% on this month and 20% yoy.
its basically elizabeth holmes, but with AI, and with the same freaky facial expression.
"revenue" that's propped up by the government and ignores other factors, such as overall expenses, competing open source models, and non-realized assets.
The difference between Microsoft and OpenAI or Anthropic is that Microsoft has a profit model.
There's absolutely no way that the big LLM companies can make enough profit to overcome their expenses in the next decade even, especially since the technology on the open front only continues to improve. That's why the LLM bros keep hyping it up via fear mongering and criminal activities like hacking - to keep selling the illusion that it's AI.
The bubble part is the extremely high losses, even before hiding training expenses as assets that become worthless the next month after a new version release. Also monumental promises that they will require massive new fundraising for, that fewer people understand remain possibly sustainable.
50B is annualized revenue, accrued revenue will be almost certainly be quite a bit lower this year.
Tech companies love reporting ARR because it is always bigger than GAAP revenue (if the business is growing at all).
It's not annualized in the traditional sense. They take their highest revenue day and multiply it by 365.
We don't even know their calculation. It's just a number they present without context.
That... Doesn't make sense does it? Like apart from fraud what's the point of doing it like that?
Oh, it's absolutely a fraud meant to deceive investors.
Just not legally speaking.
yeah $20 imaginary dollerydoos were shaved off the $70 anticipated imaginary dollerydoos, it's all so idiotic
Let it pop! Let it pop! No bailouts for billionaires. Just let the fucking system collapse. I’ll happily go back to a trade a barter system of some kind.
Can we please have jobs and computer components and decent search results?
Yes you can have a job. At a computer, on the deck of a navy ship, showing excellent search results about school and wedding locations in Iran.
