350,000 servers? Jesus, what a waste of resources.
just capitalist markets allocating resources efficiently where they’re need
It’s a brand new, highly competitive technology and ChatGPT has first mover status with a trailer load of capital behind it. They are going to burn a lot of resources right now to innovate quickly and reduce latency etc If they reach a successful product-market-fit getting costs down will eventually be critical to it actually being a viable product. I imagine they will pipe this back into ChatGPT for some sort of AI-driven scaling solution for their infrastructure.
TL;DR - It’s kind of like how a car uses most of it’s resources going from 0-60 and then efficiencies kick-in at highway speeds.
Regardless I don’t think they will have to worry about being profitable for a while. With the competition heating up I don’t think there is any way they don’t secure another round of funding.
Facebook is trying to burn the forest around OpenAI and other closed models by removing the market for “models” by themselves, by releasing their own freely to the community. A lot of money is already pivoting away towards companies trying to find products that use the AI instead of the AI itself. Unless OpenAI pivots to something more substantial than just providing multimodal prompt completion they’re gonna find themselves without a lot of runway left.
If they run out of money (unlikely), they still have a recent history with Microsoft.
Sounds like we’re going to get some killer deals on used hardware in a year or so
Totally not a bubble though.
Yeah. It’s a legitimate business, where the funders at the top of the pyramid are paid by those that join at the bottom!
Now’s the time to start saving for a discount GPU in approximately 12 months.
They don’t use GPUs, they use more specialized devices like the H100.
Everyone that doesn’t have access to those is using gpus though.
We are talking specifically about OpenAI, though.
People who previously were at the high end of GPU can now afford used H100s -> they sell their GPUs -> we can maybe afford them
Can I use a H100 to run hell divers 2?
PLEASE!!!
I do expect them to receive more funding, but I also expect that to be tied to pricing increases. And I feel like that could break their neck.
In my team, we’re doing lots of GenAI use-cases and far too often, it’s a matter of slapping a chatbot interface onto a normal SQL database query, just so we can tell our customers and their bosses that we did something with GenAI, because that’s what they’re receiving funding for. Apart from these user interfaces, we’re hardly solving problems with GenAI.
If the operation costs go up and management starts asking what the pricing for a non-GenAI solution would be like, I expect the answer to be rather devastating for most use-cases.
Like, there’s maybe still a decent niche in that developing a chatbot interface is likely cheaper than a traditional interface, so maybe new projects might start out with a chatbot interface and later get a regular GUI to reduce operation costs. And of course, there is the niche of actual language processing, for which LLMs are genuinely a good tool. But yeah, going to be interesting how many real-world use-cases remain once the hype dies down.
It’s also worth noting that smaller model work fine for these types of use cases, so it might just make sense to run a local model at that point.
Good. It’s fake crap tech that no one needs.
It’s actually really awesome and truly helps with my work.
I think the guy above is just mad he can’t figure out how to use it. Always easier to be mad at the tool.
GPT is selectively useful. It’s also, as of the last few weeks dumb as a bag of bricks. Dumber than usual. 4 and 4o are messed up. 4 mini is an idiot. Not sure how they broke them, but it started roughly around the time of the assassination attempt. Not sure if it was a national security request or a mere coincidence, but just the same.
I’m even seeing 4o make comically dumb and stubborn programming mistakes lately, like:
GPT: “I totally escaped that character”
Me: “no, it’s the same as your previous response.”
GPT: “Oh, sorry, here is the corrected code.” replies with same code again.
I canceled my sub.
The start(-up?)[sic] generates up to $2 billion annually from ChatGPT and an additional $ 1 billion from LLM access fees, translating to an approximate total revenue of between $3.5 billion and $4.5 billion annually.
I hope their reporting is better then their math…
Probably used ChatGPT….
Maybe they also added 500M for stuff like Dall-E?
Good point - it guess it could have easily fallen out while being edited, too
I see Scott Steiner has a hold of their calculator…
I hope so! I am so sick and tired of AI this and AI that at work.
I will be in a perfect position to snatch a discount H100 in 12 months
lol, lmao
Oh no!
Anyway…
Bubble. Meet pop.
Last time a batch of these popped up it was saying they’d be bankrupt in 2024 so I guess they’ve made it to 2025 now. I wonder if we’ll see similar articles again next year.
womp womp
For anyone doing a serious project, it’s much more cost effective to rent a node and run your own models on it. You can spin them up and down as needed, cache often-used queries, etc.
For sure, and in a lot of use cases you don’t even need a really big model. There are a few niche scenarios where you require a large context that’s not practical to run on your own infrastructure, but in most cases I agree.
