OpenAI's profitability looks worse than I thought:

1) Non-compute operating costs look higher, especially marketing, so while the gross margin is ~50%, the operating margin is likely negative.

2) Additionally, R&D was ~$1.2bn per month prior to GPT-5's release, but gross profits during its 4-month release were only $0.7bn per month.

So before I thought the picture was that each model paid for itself over its lifecycle, and OAI was only loss making due to investments in the next model.

But now it looks like each generation makes a loss. It's a race to AGI, where each lab is taking losses to get there faster.