WEBVTT - Exclusive: OpenAI Spent $34 Billion In 2025, With Losses Up 8X

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<v Speaker 1>Zon Media. I'm d Zetron. This is better offline and

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<v Speaker 1>I've seen open ayes audited financial so twenty twenty four

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<v Speaker 1>and twenty twenty five play the goddamn music maps. Today

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<v Speaker 1>I can exclusively report, based on audit did financial documents

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<v Speaker 1>view by this podcast that have been independently verified by

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<v Speaker 1>the Financial Times, the Open Aye lost around thirty eight

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<v Speaker 1>point five billion dollars in twenty twenty five, growing said

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<v Speaker 1>losses by nearly eight hundred percent year of a year,

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<v Speaker 1>as well as other crucial details about the financial condition

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<v Speaker 1>of this company. Due to the seriousness of this story,

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<v Speaker 1>I'm not going to do very much editorializing. I'm going

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<v Speaker 1>to keep things straight laced, as the numbers speak for themselves,

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<v Speaker 1>and well, I want to come up with better jokes,

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<v Speaker 1>but no, seriously, folks, who've got to take this one seriously.

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<v Speaker 1>I'm serious. I'm also going to somewhat punt on giving

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<v Speaker 1>every single number here. You can find the companion newsletter

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<v Speaker 1>in the show notes, which goes into much more detail.

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<v Speaker 1>But I want to give you the top line and

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<v Speaker 1>let you know that I intend to do more with this.

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<v Speaker 1>But I had to get this out when I had

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<v Speaker 1>to get it out, and there were, by the way,

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<v Speaker 1>no situations where I was trying to delay this. This

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<v Speaker 1>went out the second I could. Let's start with twenty

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<v Speaker 1>twenty four, open Ai had three point seven billion dollars

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<v Speaker 1>in revenue, twelve point four billion dollars in costs and expenses,

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<v Speaker 1>and a net loss attributable to open Ai of five

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<v Speaker 1>point h nine billion dollars. Its cost of revenue was

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<v Speaker 1>two point six five billion dollars and its R and

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<v Speaker 1>D costs was seven point eight one billion dollars. I

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<v Speaker 1>do not have a breakdown of how these terms are defined. Technically,

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<v Speaker 1>open ai was left with an eight point eight four

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<v Speaker 1>billion dollar loss at the end of twenty twenty four,

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<v Speaker 1>but it then marked three point seven four billion dollars

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<v Speaker 1>of losses as net loss attributable to non controlling members capital,

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<v Speaker 1>leaving the net loss tributable to the company, as I mentioned,

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<v Speaker 1>at five point oh nine billion dollars. Speculate as to

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<v Speaker 1>what that means now. In twenty twenty five, open ai

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<v Speaker 1>had around thirty eight point five billion dollars in losses

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<v Speaker 1>attributable to the company. Its revenue was thirteen point zero

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<v Speaker 1>seven billion dollars, its cost of revenue was seven point

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<v Speaker 1>five billion dollars, and its R and D was nineteen

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<v Speaker 1>point one eight billion dollars. Please note that twenty twenty

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<v Speaker 1>five was also the year that open ai converted from

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<v Speaker 1>a nonprofitable for profit entity, leading to a forty one

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<v Speaker 1>point five to five billion dollar loss due to changes

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<v Speaker 1>in the fair value of convertible interest and warrant liability.

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<v Speaker 1>In the end, open ai is left with a net

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<v Speaker 1>loss of sixty point three five billion dollars, which it lowered.

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<v Speaker 1>The thirty eight point five three billion dollars are removing

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<v Speaker 1>seventeen point eight seven billion dollars in costs via that

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<v Speaker 1>net loss attributable to non controlling members capital line, and

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<v Speaker 1>another three point nine five billion dollars via a net

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<v Speaker 1>loss attributable to redeeming non controlling interests. It's unclear what

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<v Speaker 1>these terms mean. They are not defined, and I have

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<v Speaker 1>nothing else to add there. In twenty twenty five, eight

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<v Speaker 1>hundred and sixty seven million dollars of open AI's revenue

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<v Speaker 1>was from soft Bank and three hundred and three million

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<v Speaker 1>dollars was from Microsoft. I intend to follow up this

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<v Speaker 1>story in the next month with more in depth reporting

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<v Speaker 1>related to the documents. They're detailed, and I need time

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<v Speaker 1>to fully pass them. Once I've done so, you'll know.

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<v Speaker 1>I will say that the financial condition of open Ai

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<v Speaker 1>is deeply concerning. Thirty eight point five billion dollars in

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<v Speaker 1>losses are around there. Are astronomical and are far higher

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<v Speaker 1>than most believed it would be, and indeed are very

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<v Speaker 1>different to those that have been previously reported. Losses also

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<v Speaker 1>appear to be mounting year of a year at a

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<v Speaker 1>dramatic rate, and I'm not sure how this company finds

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<v Speaker 1>a way toward any kind of sustainability of profitability. I have,

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<v Speaker 1>as mentioned, save the editorializing today, not going to do it.

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<v Speaker 1>I need more time. I believe the best thing I

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<v Speaker 1>can do for the general public is to deliver this

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<v Speaker 1>news as plainly as possible. More to come Zitro now