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That seems so weird when you think about the pricing for openai API. It feels at least an order of magnitude cheaper than using chatgpt plus subscription, which in turn is $20/month. If Copilot is losing money, openai must be burning money by truckloads.

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Openai is losing money. I’m too lazy to find the article, but it is mindblowing how much they’re losing

Edit: nvm, I found it https://medium.com/illumination/openai-lost-540m-in-2022-needs-100b-to-developing-artificial-generative-intelligence-20126721cd13

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It sure is, what would make you think otherwise? It has enough VC money to burn

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That’s not such a big deal. Their objective is to get people hooked on the system. After that, they’ll jack up the price. Microsoft can easily afford to lose money for several years in pursuit of that target.

(One way this plan could fall through is if LLM tech progresses to the extent that free and open source copilots, run locally, can give result that are just as good.)

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One way this plan could fall through is if LLM tech progresses to the extent that free and open source copilots, run locally, can give result that are just as good.

MS might be in trouble then.

Performance is not great but apparently it’s not optimized at all as of right now.

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