Ethan Mollick: OpenAI reported as profitable with over 40 percent gross margins, but training costly

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Ethan Mollick: OpenAI reported as profitable with over 40 percent gross margins, but training costly — OpenAI profitable but training costly

Ethan Mollick highlights that if recent leaked financial data is accurate, OpenAI has become profitable in serving its customers, achieving gross margins above 40 percent.

However, Mollick points out that the process of training artificial intelligence models remains very expensive. He also suggests that automating AI research could help increase training efficiency, allowing a superhuman researcher to accomplish more with fewer resources.

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Mollick has previously noted how some companies exhaust their token budgets rapidly, citing $500 million in employee spending in a single month. He has also reported that the Claude Fable workflow can quickly consume tokens, while clarifying they are not Fable tokens in use in that process. These observations shed light on the high operational costs involved in AI development.

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