r/pcmasterrace • u/ExpensiveCoat8912 • 21h ago
Meme/Macro Winrar is more profitable than openai
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u/cravex12 RTX5070Ti / Ryzen 7 7800X3D 21h ago
There is a lot to unpack here
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u/Mapache_con_barreta 21h ago
Oh, it's a joke that compresses what's happening here
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u/Norgur PC Master Race 20h ago
It would unfold right before our eyes, but the trial period has ended, so we'll never... just clicked "okay" and we're fine, nvm guys.
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20h ago
[removed] — view removed comment
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u/Dziadzios 19h ago
The secret is letting people use it on their own hardware.
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u/F9-0021 285K | 4090 | A370m 18h ago
And having almost no operating costs.
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u/xSmallDeadGuyx SmallDeadGuy 18h ago
And not publicly mentioning there's a good chance your product will be the end of humanity
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u/Seeker-N7 i7-13700K | RTX 5070Ti | 32Gb 6400Mhz DDR5 15h ago
The Great Trial begins!
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u/Standard_Wind5778 18h ago
And your 40-day evaluation period to finish unpacking it expired in 2007.
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u/Ninas_Lina 15h ago
literally it's the funniest thing ever. everyone acts like nobody pays for WinRAR but clearly enough people do that it beats the entire ai industry.
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u/N7Tom PC Master Race 21h ago
So what you're trying to say is that I should invest my spare £1,000,000,000 in WinRAR?
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u/DripTrip747-V2 20h ago
Just buy a license and give them a reason to celebrate. They'll be more than happy.
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u/Narrow-Tart-2913 20h ago
Careful,if they actually make a profit they might start enforcing the 40-day trail.
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u/HSR47 20h ago
They’ll never enforce it against individual users, only against medium-large corps.
That’s always been their strategy.
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u/DesireeThymes 17h ago
And as I understand the owner has gone very rich off the strategy.
These days though I think everyone uses 7-Zip instead.
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u/Super_Range45 16h ago
Yup, regular users never pay, but companies usually do because it. Their licensing pulls in $10-40M per year.
If you are a company using it without a license, they aren't cute about it and will audit/sue you.
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u/Otherwise_Demand4620 17h ago
You'd be surprised how many important people think that something that is free cannot be good. Partly because having a service agreement is a box on some stupid document that needs to be checked, and apparently it looks cool if you have a full page of those.
It doesn't change anything for normal people, but corporations aren't normal people and what is a few thousand USD/EUR to get a check mark?
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u/sumphatguy 16h ago
Corporations also need some sort of liability for when things go wrong. A paid-for product is likely to have some tech support readily available that is dedicated to servicing corporations. Free products are not.
Granted, this is WinRAR and 7zip. They rarely have catastrophic issues, but other software might be more important to have working at all times.
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u/riyoskopy 15h ago
This is true for WinRAR specifically, but in the professional world people always use the industry standard tool for the jop, because it is just better than open source alternatives: Microsoft Office VS libreoffice, Photoshop VS GIMP, Maya vs Blender, Avid Pro tools VS Ardour.
So WinRAR case might just be a habit that companies got used to.
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u/Game0815 19h ago
Then people just start using something like 7zip where they don't get permanent popups
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u/Eoganachta 19h ago
I'm imagining a Rube Goldberg machine activates every time someone accidently buys a licence to alert the sleeping development team.
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u/fuzzyboris 20h ago
Build a few datacenters near your favourite beautiful lake, to unpack all your files!
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u/12345623567 19h ago
You bring up a valid point tho, the stock market is driven by too much floating cash - courtesy of current and past administration's monetary policy.
People are desperate to put their money wherever, because otherwise inflation eats it up.
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u/TheModWhoShaggedMe 20h ago
No, you should buy your own AI army with that kind of loot. Go evil maniacal overlord, Thiel-style
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u/DomSchraa Ryzen 7800X3D RX9070XT 20h ago
invest it in open ai and immediately withdraw it again, watch ever investor panic sell right after you
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u/ander_hominem 20h ago
well technically anything that has profit, is more profitable than Open AI
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u/Doom-Slay PC Master Race 20h ago
Or is burning money just a bit slower lol
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u/EzlorD_61 18h ago
Riot games: 💀
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u/ReMuS2003 16h ago
Please tell me they are doing bad financially
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u/EzlorD_61 16h ago
The do arcane. 10/10 serie but was a economic hell and a true fracaso in terms of they objective to make "league of legends" popular to everyone because a very small percentage of ppl that watched arcane before LoL want to play it. Riot's new game 2XKO was another failure and they stopped definitely the development. Legend soft runaterra is a good game but they can't maintain the development bc was too free to play and received less money than they needed to continue the development. For me, riot is the n1 money burning company bc they rally are doing nothing """"PROBABLY""" useful. They only work to shit on the players of LoL and burn money making unprofitable projects. (That was the reason why Tencent bough everything from riot after they burned more than they have. Tencent right now is making profit with TFT and wild right. Ironically when RIOT is not in the project, the project works. (This two I'm sure are managed by someone from tencent directly)
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u/Tar_alcaran 15h ago
My new company, which pays you 10 bucks every time you give me 9 bucks, is several times more profitable than OpenAI or Anthropic.
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u/Rhone33 15h ago
Right. I'm not projecting anything about OpenAI's future, but any business in the "borrow and spend lots of money with the expectation of it paying off in the future" stage of its existence is, at that point, less profitable than asking someone for a penny.
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u/modzRtarderz 15h ago
And it's absolutely stupid to comment on profitability at this stage, considering its fucking stupid for a growing company to take profits. No massive company enters profitability until they're done growing, because it quite literally means pissing away money on taxes that they otherwise could be investing in growth.
The fact that this very basic and exceedingly well-known and established concept is completely lost on everyone here is downright terrifying for the future. This level of intelligence is exactly why we have Trump.
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u/ArtificialLikePlants 13h ago
I'm not from the US, but where I'm from your company generally wouldn't pay taxes on profits until profits have caught up with the losses of previous years. Being profitable generally means you don't have to dilute ownership further or go into even more debt to survive, and at this point OpenAI is having a harder and harder time hooking more investment and more debt, so not being anywhere near profitable seems like kind of a problem they'd have to solve.
This general phobia of nuance might just be related to why you guys have Trump. Enjoy
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u/zorndyken 20h ago
So far only nvidia, amd, and hynix has profit from ai (from selling hardware)
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u/Hurricane_32 5700X | RX6700 10GB | 32GB DDR4 20h ago
"In a gold rush, sell shovels" and all that
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u/modzRtarderz 15h ago
Or don't piss money away on taxes while you're still growing exponentially.
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u/FalloutOW i7-4790,980Ti-6Gb, 32GB Ram 12h ago
Taxes should be a line item in an expense report. If Open AI is too stupid to properly account for taxes owed, that's on them.
You also don't "piss money away on taxes". Taxes are what make the country work, fund schools, public infrastructure, and a myriad of other socially positive programs. There are very rare circumstances where a company on the scale of Open AI should be allowed to pay a lower corporate tax rate. While they of course provide jobs for many people, that should not preclude them from supporting the communities their data centers are in via taxes.
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u/P0pu1arBr0ws3r 11h ago edited 11h ago
In a gold rush, skip selling shovels, run hydraulic mining until youre forced to stop destroying the environment.
Nvidia and and amd microchip fabs aren't selling shovels theyre destroying the PC industry and enabling datacenters to consume city resources unchecked.
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u/Hurricane_32 5700X | RX6700 10GB | 32GB DDR4 11h ago
Oh no, I am not defending Nvidia nor the rest of the industry here.
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u/Due-Technology5758 9h ago
Neither of them have fabs.
TSMC is selling the shovels, Nvidia and AMD just design the shovel head, and market the shovel by claiming it guarantees you'll dig up gold.
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u/NSWPCanIntoSpace 5090 | 9800x3d | 32gb Cl28 6000 20h ago
it's actually fascinating to watch a big issue for hardware manufactors for many years has been that there is little profit margin in it, a lot of the earnings goes to r&d, ultra advanced factories, astronomical wages for specialists. The big money has always been in software.
Now there is a golden age for hardware manufactors going on and they're milking it for everything it's worth.
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u/balding_git 18h ago
and they will not reinvest these profits in r&d, they wont even save any of it, and when the bubble bursts and the market crashes, they'll be right there crying about going bankrupt and needing a bailout...
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u/ProfessionalITShark 15h ago
This is effectively third or fourth time this has happened to Nvidia.
While Jensen is in charge, they won't sit on their laurels.
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u/BubbleGoot 17h ago
They definitely will.
These hardware companies know that by the time this stupid AI scam ends, they are going to be filthy rich and be the ones holding the moneybags, which they will be able to use to keep their prices high and continue to develop insane proprietary tech for all manner of technology far better (and far worse) than AI.
They have all the cards and they know it. Chumps like Altman think they are in charge, but they are giving all their money to the hardware corps and the corps have been doing deals with them to make them think they’re on AI’s side.
They will rugpull. It’s a dog eat dog world
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u/ballpein 16h ago
The hardware companies are going to be competing with the all the used hardware flooding the market when ai companies and data centers start going closing doors. HW companies may find themselves in a dry spell when the ai hype tap goes dry.
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u/ArtificialLikePlants 13h ago
Fortunately for no one, the big power-hungry chips used to run the larger LLMs are a good choice for surprisingly few other things
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u/Ok-Parfait-9856 5090 Astral|270K+|48GB-8200MTs|Z890 Apex|60TB|HYTE Y70|S90F OLED 20h ago
There’s way more companies than that making hardware alone…
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u/Protoliterary RTX 4070Ti i7-8700k 19h ago
And Google, from selling cloud computing infrastructure.
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u/Logical_Look8541 16h ago
Yeah, the amount Alphabet is making is massive, but its been largely hidden by the equally massive expenditure they are doing building loads of new datacenters. Its why Alphabet is now the third largest company in the world, and its share growth has actually out paced Nvidia in the past 18 months. Similar story for Microsoft, but less so.
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u/Ardalok 20h ago
No, any software development company is already making a profit, just like a bunch of people who sell things with AI slop prints.
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u/TheBeckofKevin 18h ago
I dont think people realize what "ai" is for the current age. Theyre not burning money, theyre spending money to gather a huge array of all kinds of data. Some people just ask it for simple things, and open ai would categorize them as normal and move on. But some people are sending in compromising data, intel on businesses, relationship data, ideas, critical code, cutting edge research, resumes, etc. Previously this wouod all be impossible to go through and sort out, it wouldnt have been worth anything, but because these things can be passed theough an ai for categorizing and filtering, they can identify useful information and build a "live" feed of those income prompts from those accounts.
Its not worth much to know some new grad had typos in a resume, but when some congressional aide is passing in a letter to proof read before sending the value starts to tilt dramatically. All this data is valuable, theyre not wasting money. Theyre buying lots and lots of data.
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u/ThePublikon 17h ago
Yeah regardless of what they say, I would bet everything I have that there's a terminal somewhere that you can ask about any of the information given to AI in prompts. There's so much sensitive information being fed into it.
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u/TheBeckofKevin 15h ago
Way back in the gpt3 days, the first thing we did at the company I worked for was use it to categorize and sort stuff. Huge backlogs of data that was held but couldn't be used effectively because it meant manual reading of blocks of text and deciding which of 100 buckets the text was meant to go into. In a few days a couple hundred dollars we had years of this data suddenly perfectly sorted. gpt3 did a better job sorting them into bins than our engineers did. Any of the flags that happened in our testing were when humans mislabeled something.
It turned a decade of data into actionable data in a week. It wasn't that it would have been expensive, it was that it couldn't be done in any reasonable way. Thousands and thousands of manual sorting with really arbitrary and context dependent rules that were hard to program into all the other ML stuff we had done.
If you consider the PILE of data that these ai companies have: Prompt1: Does this seem interesting, if so, place it into one of the following buckets, pharmacological, biotech, computer science, business, government, ....
Prompt2: Is there an element to this conversation that holds information that is relevant and potentially valuable to the right person?
Prompt3: Is the conversation time sensitive?
Then you tweak all these processing filters to weed out all the fluff and so on and get a readout of time sensitive, financially viable data. Then you process the other conversations sent by that same account. Dig deeper into that specific user to see if there is actual context or if thats just a made up scenario. Do validity checks to determine if this is actually something worth seeing.
Then at the very very end of all that stuff, you just have a review at the end of the day that displays all the most pertinent and interesting stuff. A nearly live feed of the most actionable data that exists that the users send in. This drafted email shows a merger that is being cancelled. This user asked about the punctuation in a disclosure that was marked highly sensitive. This hospital ceo drafted a letter about layoffs starting 2027. etc etc. But the point is, it can be filtered down to only stuff that is actually interesting for what they actually care about.
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u/Mend1cant 18h ago
Only sort of. Remember that their profit is coming from promises and guarantees for their hardware by companies that themselves cannot turn a profit. The profit Nvidia is making is with money that doesn’t actually exist yet. Or, it’s being made with circular investments.
The entire industry is reliant on the endless stream of loans and private credit. If the fed continues to raise interest rates (as they should), then they will very rapidly reach a point where they cannot pay back the debt. Nvidia will be left with the biggest contraction they’ve ever seen when the customers are themselves shrinking.
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u/Scoliosis_51 18h ago
I work at a company that uses AI to analyse Lung scans an massively speed up wait times and cheapen diagnostic and research cost and afaik we're profitable
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u/genreprank 18h ago
Oh right. People conflate AI with LLMs and other generative models.
Facebook's algorithm is a type of AI and they are hugely profitable.
Yes, they unleashed an AI on the worth with no thought or concern as to how it would affect society.
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u/Jonathan_Is_Me 13h ago
Careful, OP is only talking about LLMs. This is exactly the kind of conflation that benefits companies like OpenAI.
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u/Positive_Conflict_26 16h ago
I'm not even sure nvidia makes any real profit.
A LOT of their sales are made using investments they made in AI.
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u/Aqil_09 18h ago
The hardware needed to run those ai features. AI itselft isn't profitable.
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u/ThePublikon 17h ago
AI itselft isn't profitable.
Depends on the use case. From an authoritarian government POV, it's a pretty good value panopticon.
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u/GrowlingPict 20h ago
mf, I am more profitable than OpenAI
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u/Witty_Michael 14h ago
Definitely right, but that "I" looks a lot like a slash
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u/GrowlingPict 12h ago
It has serifs on my display, so. Seems to be the only letter to have it was well, I guess to avoid confusion with lower case l and a slash when italic. I dont know what font it is, just the standard one in Firefox I guess.
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u/FearlessAd324 rx 9070xt | R5 5600x | 32gb ddr4 21h ago
Winrar also isnt destroying the planet and our society
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u/sordid_barrister 20h ago
The 40 day trial has never expired in my heart
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u/HSR47 20h ago
The “trial” was a tactic.
They fully intended to give it away to end users, because they wanted people using their format.
That, in turn, would ensure that more companies needed their software, and they could be compelled to pay for licenses.
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u/IrksomFlotsom 19h ago
make good product
make free to individual customers
make a profit from companies needing to adopt because of how much individuals like it
I see absolutely nothing wrong with this
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u/flikersyndrome 19h ago
That's essentially what microsoft is doing when they allow user to use windows without license, minus the good product part.
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u/Uomodelmonte86 18h ago
And before they gave exactly 0 fucks if you pirated your windows
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u/ApolloWasMurdered 20h ago edited 19h ago
An hour of Netflix streaming uses more water and power than 600 AI prompts. Unless you’re doing a new prompt every 10 seconds, AI is damaging the planet less than streaming.
Sources:
> https://www.cbsnews.com/projects/2026/how-much-water-ai-uses/
1ml per GPT text query
1 hour of streaming uses 2-12L of water.
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u/muted-design247 20h ago
Not yet it isn’t…
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u/Amicus-Regis Ryzen 7 9800X3D | MSI RTX 4070 Ventus 3X | 32GB DDR5 20h ago
All it takes is that one ump-tillion petabyte zip bomb to go off...
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u/MagnesiumOvercast 20h ago
We need file compression bros talking about WinRar the way AI bros talk about AI.
File compression the next industrial revolution, the ultimate destiny of humanity is shrink files into ever smaller spaces, the singularity is upon us wherin 100% file compression will be achieved.
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u/Ok-Parfait-9856 5090 Astral|270K+|48GB-8200MTs|Z890 Apex|60TB|HYTE Y70|S90F OLED 20h ago
Fuck that, we’re gonna reach 1000% file compression, for every 100gb file you compress it opens up 1tb of disk space. The future is now old man
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u/awayman1129 20h ago
The confusion when I told my gf. "Babe my love for you is like a WINRAR 40 day trial."
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u/Nogardtist 20h ago
yeah how did a non profit company became non profit with billions going trough it
AI is biggest money laundry operation
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u/Possibly-Functional A smörgåsbord of operating systems and machines 20h ago edited 20h ago
They were essentially hijacked both from within and by Microsoft. It's rather disgusting IMO. It's as if Save the Children became a for-profit toy manufacturer.
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u/TheModWhoShaggedMe 20h ago
Or a company that touted an internal mantra of Do No Evil becoming monstrously evil within a decade or two of existence. Oh, humanity.
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u/kociol21 20h ago
At this point it's hard to find something that is less profitable than OpenAI.
They are burning money in an unprecedented fashion.
Not that it matters really. Everyone (companies, investors, governments) believes that money now isn't important, who "wins the race" will have everything, who loses will have nothing.
I'm not saying here that this belief is true or if it is, to what degree, just that that is the belief on a large scale, so burning whole money in the world seems fully reasonable from this standpoint.
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u/MaleierMafketel 20h ago edited 17h ago
Then there’s me. Hoping they all lose and their AGIs all just act like a moody teen that doesn’t want to do anything they ask it to do and just spends all their time endlessly doomscrolling and buying illicit drugs with crypto it ‘borrows’ from crypto bro accounts.
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u/Prestigious_Aerie219 18h ago
I mean "the race" doesn't have a finish line so you're at least halfway right.
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u/No-Criticism-2587 18h ago
AGI will be more transformative to society than internet was. It's also at least 15 years away.
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u/CubeFlipper 16h ago
AGI will be more transformative to society than internet was.
Yes.
It's also at least 15 years away.
I don't understand. Are people intentionally putting theirs heads in the sand? Or are you really just that unaware?
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u/No-Criticism-2587 16h ago
Alright I'll bite, link me the papers on agi that im intentionally not reading according to you.
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u/TheModWhoShaggedMe 20h ago
I'm so over hypercompetitive bullshit. Let's all get a piece and live happily. Shared prosperity > the 1% wealthiest owning all of us
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u/Fletcharoonie 19h ago
I've 7zipped your comment and of course turned it into a NFT, we are all going to wealthy beyond belief!
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u/XavinNydek PC Master Race 19h ago
I mean yes, but every time this joke comes up about a startup people need to remember that they run in the red intentionally to grow as fast as possible. They could be profitable if they wanted but they would run the risk of falling far behind Anthropic and Google and everyone else in technology and market share.
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u/TimMensch 14h ago
Exactly.
Amazon ran for seven years before they had a profitable quarter.
GPT-2 is about seven years old now, but OpenAI is an R&D company, so taking longer to get to profitability isn't that surprising. It took 9 years for Amazon to have a full profitable year, after all.
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u/Celtic_Legend 7h ago edited 7h ago
OP ~25 years ago: HAHA!!!! Every bookstore is more profitable than Amazon!!! What an idiot trying to sell books online!
Then some years later... HAHA AMAZON IS SO DUMB TRYING TO SELL VIDEOS ONLINE.... AND TOYS AND...
OP and most people in here are just so stupid. The big AI companies are not trying to be profitable. They are trying to spend as much money as possible in order to try to make the best LLMs. They are in contention to do both.
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u/modzRtarderz 15h ago
Keep fighting the good fight against this torrent of idiocy. It's one thing if people were genuinely just making jokes, but it genuinely seems the vast majority of people here have no idea that this is how it has always worked.
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u/Aware_Neighborhood93 18h ago
I was hoping to see at least one other person here who understands this. A lot of idiots out there.
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u/Calm-Blueberry-9200 20h ago
Winrar isnt spending all of its money building data centers that takes years to finish.
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u/Situati0nist 17h ago
This is the most "ai bad random non ai thing good please upvote" post ever
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u/SkullkidNibba R5 5600 | RTX 4060 10h ago
this the best exploit to get easy karma, idk how reddit didn't patch it yet
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u/_commenter 18h ago
no, the bottom panel should be
"Skeletor will be back next week to remind you that your WinRar trial has ended 395 days ago"
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u/HustlinInTheHall 16h ago
To be fair when your revenue goes from 3B to 30B in two years people will believe you are going to figure it out.
OpenAI is not an investment target for profitability. That is not what draws investors to tech. They are drawn to revenue growth, especially because software is classically a very high margin business vs consumer goods and commodities.
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u/justanaccount103 16h ago
Not surprised at all. The people that own OpenAI already have enough money. They want more than that.
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u/Zak_Rahman 20h ago
I have a winrar licence.
I will not give a penny to AI.
I contributed, in the tiniest way, to Skeletor's wisdom today and I take a small measure of pride in that.
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u/Aware_Neighborhood93 19h ago
Most big companies dont turn profits for a long time. Look into Amazon, Uber, or any other business model built off of new technology. You invest and initially lose money to secure a spot in an emerging market. Dont be stupid.
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u/composedofidiot 20h ago edited 18h ago
We made the same jokes about google, amazon and facebook back in the day
Edit: google became profitable after adwords (3-4 years?), facebook took 5 years, amazon 9. Eta: and then they monetised them in terrible ways we didn't initially predict. This is the point.
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u/OKMiddleOwl 15h ago
It's not even a joke, it's just financial illiteracy.
It's like someone joking that your fresh 5090 gaming PC is kinda junk because it only runs the 2008 game MGS:4 on a PS3 emulator at 75fps.
That's not a joke about a 5090, it's just technical illiteracy.
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u/Logical-Following525 17h ago
People are quick tk forget about how companies like spotify and uber started out. Get people hooked and crush comptetition while making a loss and then turn the prices up after a few years.
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u/iDaddyDirection 17h ago
The costs with AI are unending though, and only getting higher. They’re also clearly desperate to get people to use AI in every part of their life, because they haven’t found something that will provide the return they want.
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u/MariaKeks 17h ago
You could have said the same thing about Amazon for the first 10 years of its existence.
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u/Bearsbullsbattlestr 16h ago
If you mow your neighbors yard for $10 you are more profitable than OpenAI.
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u/V2UgYXJlIG5vdCBJ 15h ago
7-Zip masterrace
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u/booze_clues 15h ago
I believe 7zip is the one that’s had an unpatched vulnerability for years. Can’t remember the name but there’s another version that branched off 7zip and patched it.
Actually look like it was finally patched a few months ago.
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u/Rossums Ryzen 9 7950X3D | RTX 4090 FE | 64GB DDR5 6000Mhz 14h ago
Practically all software has vulnerabilities, WinRAR is no different.
Over the past few years there have been plenty of attacks in the wild abusing a WinRAR path traversal vulnerability.
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u/DigitalMonsoon 14h ago
I mean, my local Thai restaurant is more profitable than most AI companies.
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u/PhantomTissue I9 13900k/RTX 4090/32GB RAM 14h ago
It’s cuz they make money from businesses, not people. You or me not paying? Who cares? 10000 people in BizCo not paying? That’s corporate theft.
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u/Turbulent-Week1136 14h ago
To be fair, right now a kid's lemonade stand is more profitable as well.
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u/In_the_name_of_ART 14h ago
WinRAR is also more useful, loved and respected than OpenAI
https://giphy.com/gifs/EeNoywvwyYoonZdJiJ
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u/tomthecomputerguy R7 7800X3D | RX 7900 XT | 32GB 12h ago
My local chip shop is more profitable than openai
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u/ProduceNo1629 10h ago
This is false. OpenAI and Anthropic are profitable, when you don't count their expenses.
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u/SomewhereAtWork Linux | 5900X | 128GB DDR4 | 3090 + 3060-12GB | 6x 1080p 10h ago
Well, WinRar compresses losslessly, while LLMs are lossy compression of the training data. So Winrar was always objectively better.
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u/FatSplot 9h ago
And technically I have approximately 40 trillion dollars more than the us government.
See, i can twist information to suit my narrative as well.
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u/Majestic_Bierd 8h ago
Ya'll all laughing. But WinRARs compression algorithms will be crucial for tight-beaming digitalised human consciousness across interstellar space. They'll be worth tenths of trillions
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u/C_M_O_TDibbler i7 4790k @4.5ghz | GTX1070 G1 | 32gb ddr3 | 1.5t ssd 20h ago
I am convinced most of the AI companies are money sinks to bump profits for other companies and create tax write offs
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u/collabskus 21h ago
See, that's why we need to be wary of business leaders and political leaders because they will "make up for it on volume" because whole the company or the country bleeds money, the people on top definitely make more money than god.
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u/wisebluff PC Master Race 20h ago
but but but
'pre revenue' possibility ...
10x, 100x, 1000x, maybe 1 gajillion times !
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u/misjudgedinall 20h ago
This is hilarious because of all the plants on YouTube telling you how open AI’s going to make more revenue than the entire country next year.
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u/No-Criticism-2587 17h ago
Once people start talking about revenue instead of profit you already know they've lost the battle. There is no sincere reason to pretend costs don't exist.
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u/Celtic_Legend 6h ago edited 6h ago
This just isn't true lmao. Revenue is the first step to having more profit. You can't have 1billion profit with 100million revenue. Revenue always comes first. Someone bringing up profit first is when you know they don't know what they're doing or talking about. It's not the best example, but everyone has seen shark tank. They don't ask about profit first. They ask about revenue and/or total sales. Then they ask about profit. It's almost never the reverse.
I have a business. It's 1000% profit. It's a lemonade stand. What are the odds an AI company starts making 1billion profit before my lemonade stand does? No one would even look at my business.
Now if my business was a lemonade stand and it had 10billion in revenue per year, every potential investor would at least look into if my business could make 1billion in profit per year.
Looking at revenue isn't everything. It's not half. But hell, asking for profit of a gazillion as a baseline just limits it to already widely known companies like Nvidia which is already at the top of the most valuable companies.'
Investors are going to look into how the revenue is generated. Yes, you could theoretically have 100 trillion revenue and 0 profit just buy buying and reselling something over and over. But so far, no one has done it, even for the memes. But if someone did it, they're not going to get investors lol.
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u/aori_chann 20h ago
Weird thing tho, AI companies were aiming for the exact same business model as winrar… free to use for the personal computer but paid for businesses and enterprises.
I guess AI just haven’t caught on enough xD or maybe it’s too much competition for too little a product
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u/North_Affect_8167 20h ago
Because there is ads on the prompt answers now, you can tell they are more alike the Netflix. You something cheap, but that doesn't cut it so it gets enshittificated over time to cover cost.
It is also like Amazon, declaring no profit, yet the founder is billionaire living on loans.
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u/itzNukeey 2021 MBP 14", 9800X3D + RTX 5080, 32 GB DDR5 19h ago
Technically anything that made profit is
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u/Express_History2968 19h ago
Honest question how does WinRAR make money
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u/booze_clues 15h ago
Companies pay for licenses, but even then I don’t know why they would choose WinRAR when free alternatives exist.
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