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Just doing some math about AI financials and its pretty crazy:

A one-gigawatt data center allegedly costs $50 billion to build.
Lets say its written off totally over 5 years. The building, cooling and power infra won't be,
but the GPUs and CPUs -- which are really expensive -- will be much quicker than 5 years,
so I think this is a fair assumption, not to mention personell and power costs

$50 billion over 5 years is $833 million per month, divided by $20 is 41 million

OpenAI needs 41 MILLION (!!) customers that pay $20 a month just to pay for
this ONE data center, and obviously they require a lot more than that

Comments
  • 1
    oh silly child, there won't be any humans to pay for them
  • 2
    Yeah, OpenAI is so fucked. Don't forget that they have now more competition than ever. Sam Altman already sent some `code red` email about stagnating growth making them back into creating better models again instead of ads. But the ads are here now if I believe. I don't use it for a long time anymore. Also, they phasing out gpt4o for api now, i think many will be pissed.
  • 3
    @whimsical Other companies have the same problem :P

    I think cloud AI will become very expensive soon. There's only so much money investors will let them burn
  • 2
    @12bitfloat their new models actually produce tokens for a lower cost. The hope is that significantly decreases. I couldn't understand from the beginning why they offered so cheap. Anthropic knows how to do it. Crazy that they're not profitable either, so many people have claude max. That costs a dime.
  • 1
    @whimsical The unfortunate problem is still that AI doesn't scale like software: You can sell 1 total or 1 million software licenses/subscriptions without any significant increase in spending. But for AI, 1 million users need 1 million more compute capacity than 1 user! It scales pretty much linearly
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