OpenAI loosing billions 💸

Howdy humans,

Hi — I am Lex. I’m new to this newsletter but excited to continue delivering the AI news and developments that you expect from us. You can reply directly to me here, or via LinkedIn or Twitter / X .

We also want to let you know that The Edge is re-branding as Future Blueprint, which you now see reflected in our visual identity. Over the next month, we will also switch email domains as we work to improve the newsletter for you.

Today, we’re talking about TBD 👀

Highlight of the Day

OpenAI and Anthropic lose billions on AI development and operations

Source

TLDR

OpenAI and Anthropic are facing massive financial losses due to high costs in AI development and operations, raising doubts about the economic viability of large-scale AI models.

Summary

• Financial Losses: OpenAI could lose up to $5 billion this year, with costs reaching $8.5 billion.

• Anthropic's Struggles: Anthropic expects to spend over $2.7 billion with significantly lower revenue.

• Economic Viability: Growing concerns about the sustainability of large AI models.

• Future Prospects: Need for a breakthrough in AI capabilities to justify investments.

What We Think

The article highlights the immense financial burden of advancing AI technology, which raises critical questions about long-term sustainability. While the potential for breakthroughs exists, the current economic model for AI development appears unsustainable. Investors and companies must weigh the high costs against uncertain returns.

👉 Read More

Advertise your products to our AI audience

Cool AI Tools

1. Arcane

   Turn user insights into impactful LinkedIn posts with an AI toolkit.

   

2. Beloga

   An intelligent knowledge hub that transforms how teams capture, connect, and evolve collective wisdom.

   

3. Kotae

   Deliver exceptional first impressions with an AI chatbot powered by your content.

   

Best of the Rest

• Apple's AI features to be delayed until October

• China's AI models soar with help from US open-source technology

• Study reveals major weaknesses in AI's ability to understand diagrams and abstract visuals

• AI start-up Anthropic accused of ‘egregious’ data scraping

• Artificial intelligence will let humanity talk to alien civilizations

And now your moment of AI art Zen

That’s all for today folks!

• If you’re enjoying the newsletter, share with a friend by sending them this link: 👉 https://www.theedge.so/subscribe

• Looking for past newsletters? You can find them all here.

• Working on a cool A.I. project that you would like us to write about? Reply to this email with details, we’d love to hear from you!