1vuio0pswjnm7Dec 30

OpenAI's cash burn will be one of the big bubble questions of 2026

https://www.economist.com/leaders/2025/12/30/openais-cash-burn-will-be-one-of-the-big-bubble-questions-of-2026

Show threadlaweijfmvoDec 30
why does the article used words like burn and incinerate, implying that OpenAI is somehow making money disappear or something? They’re spending it; someone is profiting here, even if it’s not OpenAI. Is it all Nvidia?
Show threadpopalchemistDec 30
Because typically one expect a return on investment with that level of spending. Not only have they run at a loss for years, their spending is expected to increase, with no path to profitability in sight.
Show threadbdangubicDec 30
not that I disagree but would it be fair to say though that we have seen this before where it turned out OK? say Uber? Amazon?
Show threadjcranmerDec 30
IIRC, current estimates are that OpenAI is losing as much money a year as Uber or Amazon lost in their entire lifetime of unprofitability. Also, both Uber and Amazon spent their unprofitable years having a clear roadmap to profitability. OpenAI's roadmap to profitability is "???"
Show threadbdangubic

I have lived through Amazon’s rags to riches and there was never a clear plan to profitability. Vast majority of people were questioning sanity of anyone investing in Amazon.

I am not saying OpenAI is Amazon but am saying I have seen this before where masses are going “oh business is bad, losses are huge, where is path to profitability…”

Dec 31 at 12:00amWeb
Show threadesafakDec 31
Your recollection is hazy. Bezos chose not to be profitable in order to grow the company, and reap greater rewards in the future. https://www.youtube.com/shorts/wjLs22dNOCE
Jeff Bezos Explains How Amazon Can Be Unprofitable & Grow

YouTube
Show threadtptacekDec 31

I don't know either way but every company does this, it's not saying anything meaningful to say that a new company is taking an "investment year" or two or ten.

I do know that in the late aughts, people were writing stories about how Amazon was a charity run on behalf of the American consumer by the finance industry.