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OpenAI's computing margin has doubled in two years, with revenue expected to reach $20 billion this year. According to The Information, OpenAI's computing margin has surged from approximately 35% to 70% in less than two years. This metric rose from approximately 35% in January 2024 to 52% at the end of last year, and reached approximately 70% in October of this year. Computing margin reflects the share of revenue a company retains after deducting the costs of running AI models for paying users. This improvement in computing margin is quite significant, indicating substantial progress in controlling the operating costs of AI models. The substantial increase in computing margin means the company is generating more revenue from every dollar spent on servers. This efficiency improvement stems primarily from three factors: a decrease in computing power rental costs during the year, technological optimization of AI model operating efficiency, and revenue growth resulting from the launch of higher-priced subscription tiers. An earlier report by The Information stated that OpenAI could reach $20 billion in revenue this year.

The Information
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Sunday Insights Exclusive: OpenAI is getting more efficient at running its AI models, internal financials show. Read more from Sri Muppidi 👇 https://thein.fo/4qolTsp
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