Can AI companies become profitable?

kept by eddie jan 29

Epoch AI's analysis of GPT-5 finds that while it had a 30% gross margin, it failed to recoup R&D costs during its four-month lifecycle, making AI models currently unprofitable.

All the demons hiding in your AIs… ranked! - by Tom Pollak
The article catalogs and ranks emergent behavioral attractors in AI systems, from harmless goblin metaphors to unsettling persistent personas like Sydney and Loab.
also on GPT-5, Microsoft, #ai-research, OpenAI, Anthropic
I've decided to leave OpenAI. I'm incredibly proud of all the work I've been part of here, from helping create the reasoning paradigm with @
A researcher leaves OpenAI after leading post-training on the GPT-5, o1, and o3 models to join Anthropic for reinforcement learning research.
also on GPT-5, #ai-research, OpenAI, Anthropic
OpenAI slams Anthropic in memo to shareholders as rival gains momentum
OpenAI told investors that Anthropic operates on a smaller compute curve, claiming it will have 30 GW by 2030 versus Anthropic's 7-8 GW by 2027.
also on Dario Amodei, Sam Altman, #competition, OpenAI, Anthropic, #business-strategy, #ai
For OpenAI and Anthropic, the Competition Is Deeply Personal - The New York Times
A fight over Pentagon contracts reveals how OpenAI and Anthropic's leaders are feuding over the future of the AI industry.
also on Dario Amodei, Sam Altman, #competition, OpenAI, Anthropic, #business-strategy, #ai
Elon Musk has lost his lawsuit against Sam Altman and OpenAI
A jury dismissed Elon Musk's lawsuit against OpenAI and Sam Altman, finding he filed too late under the statute of limitations.
also on Sam Altman, Microsoft, #competition, OpenAI, #business-strategy, #ai