Revenue growth has been dramatic. OpenAI generated $3.7 billion in revenue in 2024 before jumping to $13.07 billion in 2025. By the end of that year, monthly...
So, you’re saying it’s a new kind of capitalist trick where they lose money by subsidizing the product in order to make it completely unprofitable for all of the other companies?
I have it on good authority that this is an incorrect take.
Nope. They subsidize the product so that people are more willing to pay, and they’re betting that they have deeper pockets than the competition (hence, a race to the bottom). Once they can no longer subsidize the product, the idea is that you’re so addicted to it (or you’ve integrated it so much to your product) that you’ll pay the full price.
Except that no one will, because they’re already increasing prices and people and companies are waking up to the fact the cost does not outweigh the benefits.
So, you’re saying it’s a new kind of capitalist trick where they lose money by subsidizing the product in order to make it completely unprofitable for all of the other companies?
I have it on good authority that this is an incorrect take.
Nope. They subsidize the product so that people are more willing to pay, and they’re betting that they have deeper pockets than the competition (hence, a race to the bottom). Once they can no longer subsidize the product, the idea is that you’re so addicted to it (or you’ve integrated it so much to your product) that you’ll pay the full price.
Except that no one will, because they’re already increasing prices and people and companies are waking up to the fact the cost does not outweigh the benefits.