> company in an industry with very tight margins has much less money to invest in fundamental research
OpenAI has raised almost $18bn to date [1]. That puts it in the top 10 corporate R&D spenders globally, ahead of Intel and the entirety of big pharma [2]. (And OpenAI's gross margins for its API business are estimated around 40% [3]. Standard fare for tech. If anything, OpenAI subsidising its business with Apple and ChatGPT is behaving more like a tech giant than a start-up.)
The top of that list are the big 5 American tech companies, spending about $200bn annually on R&D. By coincidence, that's roughly the pace of U.S. VC spend [4]. The depth of American private capital markets make a solid case against favouring housing these long-shot bets inside tech giants. (Particularly absent non-compete and IP reform.)
OpenAI has raised almost $18bn to date [1]. That puts it in the top 10 corporate R&D spenders globally, ahead of Intel and the entirety of big pharma [2]. (And OpenAI's gross margins for its API business are estimated around 40% [3]. Standard fare for tech. If anything, OpenAI subsidising its business with Apple and ChatGPT is behaving more like a tech giant than a start-up.)
The top of that list are the big 5 American tech companies, spending about $200bn annually on R&D. By coincidence, that's roughly the pace of U.S. VC spend [4]. The depth of American private capital markets make a solid case against favouring housing these long-shot bets inside tech giants. (Particularly absent non-compete and IP reform.)
[1] https://techcrunch.com/2024/10/02/openai-raises-6-6b-and-is-...
[2] https://en.wikipedia.org/wiki/List_of_companies_by_research_...
[3] https://www.theinformation.com/articles/a-peek-behind-openai...
[4] https://www.reuters.com/business/finance/ai-deals-lift-us-ve...