_sword

This is a silly article. Since MSFT took a ~49% stake in OpenAI, it records its share of OpenAI's net losses in the other income line under the equity method of accounting. MSFT is offsetting its taxable income based on a prior investment

I was modeling configurations purpose-built for running specific models in specific workloads. I was trying to figure out how much of a gross margin drag some software companies could have if they hosted their own models and served them up as APIs or as integrated copilots with their other offerings

I spoke with management at a couple companies that were training models, and some of them expensed the model training in-period as R&D. That's why

I've done the modeling on this a few times and I always get to a place where inference can run at 50%+ gross margins, depending mostly on GPU depreciation and how good the host is at optimizing utilization. The challenge for the margins is whether or not you consider model training costs as part of the calculation. If model training isn't capitalized + amortized, margins are great. If they are amortized and need to be considered... yikes

Neat, more scalable intelligence for me to tell "plz fix" over my code

Sounds like meta gets the data and also anything they can scrape together about what the other labs have been doing to get better results than meta

That's why they so despise each-other; they're the same

The self dealing king Sam Altman strikes again

Even before LLMs were popularized, the shift to remote work made hiring awful in my experience. In finance roles, I had candidates who aced their tests and projects but then showed up to the job unable to competently use excel or write coherent sentences in English. Phone / zoom interviews all went fine, but clearly there was rampant cheating during remote projects.

Could you name any products?

Makes sense and was only a matter of time considering it has essentially no revenue growth to date this year and Non-GAAP margins in the low-to-mid 30's %. With near-0% revenue growth, investors will expect a SaaS company to post 40%+ margins.

Reads like a play to dilute the power of executives that departed

OpenAI is definitely planning to IPO within the next 12-18 months after it restructures into a for profit.

CEG jumping 20% on the MSFT deal means it isn’t all priced in imo. Everyone has known there are rising energy needs and had bid up CEG. Then the Three Mile Island restart news hit and apparently it wasn’t already priced in