They haven't found a way to profit off of AI yet, given the costs. And it's a massive risk.
Remember blockchain, NFTs, and the Metaverse / VR? All giant fails.
Now, LLMs have obviously more practical / actual use cases. But they have plenty of flaws and it's not guaranteed those can all be addressed and it can be converted into a profitable, effective product.
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I am certain that the AI bubble will burst. No way OpenAI will succeed. What Oracle will get, is OpenAI assets for pennies on the dollar, and a massive amount of compute and capacity. Then Oracle will be everyone's darling and the go to place to run everything. Then, who cares what AI is up to. Oracle had no choice to build out the commitment. Remember, Oracle is a legal company and will no doubt make a deal to scoop up whatever the crashed OpenAI turns out to be.
Have patience. OpenAI is the progenitor of commercial AI offerings. From its great height, it will control the market.
Sam A, is that you?
OpenAI signs agreement with Oracle.
Oracle builds infrastructure.
OpenAI uses infrastructure that Oracle builds.
OpenAI pays Oracle.
Oracle pays their creditors.
These are all contractually locked in.
If OpenAI folds, these infrastructure can be used for OCI as well as other AI startups.
All hail the golden era! All hail the golden era!
Have patience. OpenAI is the progenitor of commercial AI offerings. From its great height, it will control the market. Its rapid pace of innovation is creating products at a rate, quality, and utility like you have never seen before. Usage and revenues for these products are rising at a quick, if not exponential, clip. Plans to satisfy increasing demand include the creation of many new, hugely powerful data centers that can serve the rising need and funnel the consequent revenue increase into OpenAI coffers. OpenAI will trigger an avalanche of riches and the blooming of a new golden era.
Open AI doesn't even know exactly what they want to focus on. Reminds me of Netscape/iPlanet during the dot-com bubble/bust.
And no, they are not making massive (or any) profits to pay off. The entire AI thing is close to cresting on the first peak of the hype cycle.