For instance, how does that help them pay their operational costs and their RPOs when "annualized" revenue was only 50B/yr?
Remember that they owe oracle 85B in FY27 alone, not counting all their other RPOs.
And also remember that their "annualized revenue" number was based on extrapolation from revenue before they slashed token prices.
So then OpenAI went from non profitable to even less not profitable.
Does't bode well for their RPO back to Larry, does it?
Look up what race to the bottom means. Hint: If your competitors are charging lower cost for equivalent Koolaide, how long can you last if you don't cut your price?
@e9 OP here. Yes I understand that about annualized revenue. That is why I put the term in double quotes in my original post.
💯
Just ask customers to use 11x or more tokens.
You do know that "annualized" revenue is completely fabricated based on a mountain of lies dont you? They are going to be bankrupt in 12-18 months, it's a mathatical certainty.
@OP
The answer is it doesn't. Scam Altman's new fictional revenue is now less than his old fictional revenue.
OpenAI will fail first and then Oracle will follow.
Remember that they owe oracle 85B in FY27 alone, not counting all their other RPOs.
Not FY27
$85B is owed in FY28, starting June 1, 2027.
@ax fools refer to it as a bubble. Intelligent people go look at the reasons that cause it.
because it's a bubble you fools
OP, You are only looking at the financials on the surface and they don't add up like you have pointed out. What is more concerning, at least to me, is the financial products being used to finance the AI build out. There are striking similarities to the financial products derived during the lead up to the 2008 financial crisis including collateralized debt obligations (CDO), synthetic CDOs, and credit default swaps. Some of the debt is obscured in long term leases. A big difference between mortgage back securities and AI backed securities is that technology assets that are backing the securities become obsolete and lose their value much faster than a house. A house is still a house when the value falls but old GPUs and servers don't retain their functionality. Private equity is also highly leveraged in these transaction so loses in value in both stock and debt can lead to failures in this industry. This is where it can bleed over into the rest of the economy when banks, insurance companies, and pensions are impacted. Do some of your own research. AI is useful for this if you ask it detailed questions. I think that the economy is in a much more precarious position than we are led to be believe.
The money saved is going to revenue which results to a tax break from the federal government. Where the government is now forced to spend their city and states funds into Oracle to bring up the profits of software. Then everyone gets a 401k to retire and space X stocks goes up. Hope that makes sense