Soundtrack: In Flames - Colony To further support my independent journalism, please subscribe to my premium newsletter. It’s $7 a month or $70 a year. If you’re subscribed to the free newsletter and logged in, you should see at the bottom right hand corner of your screen a little

Edi Zitron has an exclusive report on OpenAI’s 2025 finances:

The financial condition of OpenAI is deeply concerning. $38.53 billion in losses are astronomical, and far higher than most believed it would be. Losses also appear to be mounting year-over-year at a dramatic rate, and I’m not sure how this company finds a way toward any kind of sustainability or profitability.

  • cybervseas@lemmy.worldEnglish
    141·
    2 days ago

    They borrowed money from their suppliers, who all made investments in each other. The Open AI invests in the suppliers. Infinite money glitch lol.

    • Bananskal@nord.pubEnglish
      2·
      1 day ago

      But you can’t invest more than what was invested into your business, unless you somehow create money out of nothing. How did that part happen? Or did their suppliers seriously let them put all their billions of dollars worth of shit on a tab like in a bar?

      • cybervseas@lemmy.worldEnglish
        2·
        1 day ago

        You definitely can invest more. Leverage is a thing, allowing a company to exceed its available assets for an investment they believe they can make even more money on.

        Highly leveraged companies (used to) be seen as risky. But we live in strange times and sophisticated investors don’t seem to care anymore …

        • Bananskal@nord.pubEnglish
          2·
          22 hours ago

          I don’t get it. So, investors just pay with promises these days? Promises all the way along the chain? It’s like the industry is its own bank system.