Big tech’s soaring profits have an ugly underside: OpenAI’s losses

WALL STREET JOURNAL

OpenAI and Anthropic are the two largest suppliers of generative AI with their chatbots ChatGPT and Claude, respectively, and founders Sam Altman and Dario Amodei have become tech celebrities.

What’s only starting to become clear is that the companies are also sinkholes for AI losses that are the flip side of chunks of the public-company profits.

Both, along with plenty of other startups, are raising big money and committing to future spending that will require them to raise a lot more. As they spend it on chips and renting cloud computing, sellers of chips and cloud services are the winners and are spending heavily to expand.

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