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SparklyCircuit | 16 days ago

Moreover openai (i.e. chatgpt) is facing a tricky financial situation. Openai's sources of income pertain to profitability from investors and API/subscription business model. Supposedly they are losing on every subscriber. And the reason why it held up is because there was a lot of hope generated causing investors to overinvest.

With the past investments of Nvidia into openai, the business model held up. Lately, AMD has caught up enough in AI efficiency that openai decided to built an entire stack of servers in AMD. openai's boyfriend i.e Nvidia did not like that and with Nvidia unable to guarantee return of investments via sales of it's cards to openai, Jensen Huang i.e. CEO of Nvidia is backing off from investing 100B$ simultaneously tanking a -6% of stock in a week.

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