When comparing the cost of an H100 GPU per hour and calculating cost of tokens, it seems the OpenAI offering for the latest model is 5 times cheaper than renting the hardware.
OpenAI balance sheet also shows an $11 billion loss .
I can't see any profit on anything they create.
The product is good but it relies on investors fueling the AI bubble.
All the labs are going hard on training and new GPUs. If we ever level off, they probably will be immensely profitable. Inference is cheap, training is expensive.
To do this analysis on an hourly retail cost and an open weight model and infer anything about the situation at OpenAI or Anthropic is quite a reach.
For one (basic) thing, they buy and own their hardware, and have to size their resources for peak demand. For another, Deepseek R1 does not come close to matching claude performance in many real tasks.
> When comparing the cost of an H100 GPU per hour and calculating cost of tokens, it seems the OpenAI offering for the latest model is 5 times cheaper than renting the hardware.
How did you come to that conclusion? That would be a very notable result if it did turn out OpenAI were selling tokens for 5x the cost it took to serve them.
OpenAI balance sheet also shows an $11 billion loss .
I can't see any profit on anything they create. The product is good but it relies on investors fueling the AI bubble.