Revenue growth has been dramatic. OpenAI generated $3.7 billion in revenue in 2024 before jumping to $13.07 billion in 2025. By the end of that year, monthly...
The issue for OpenAI is that their main competitor, Anthropic, has a better product than they do and is currently scooping up their market share. So that means they’re going to have to spend billions more to try to catch up, and Anthropic won’t be standing still in the mean time.
This sort of competitive arms race can burn vast sums of money and result in multiple companies going out of business if they fall far enough behind to lose investor confidence. An even bigger issue (for investors) is that no one has been able to demonstrate an AI “moat” which would allow a company to gain any traction. Without a moat, customers can jump ship the instant a competitor offers a better model.
As long as they’re all just LLMs with the same design im not sure they’ll get a moat.
Someone will likely need to depart from the current thought process and come up with something new that is the next leap, but also not have how it works leak.
Like the next big thing after transformers, before anyone else catches on. Im sure they all have people researching new ideas.
The issue for OpenAI is that their main competitor, Anthropic, has a better product than they do and is currently scooping up their market share. So that means they’re going to have to spend billions more to try to catch up, and Anthropic won’t be standing still in the mean time.
This sort of competitive arms race can burn vast sums of money and result in multiple companies going out of business if they fall far enough behind to lose investor confidence. An even bigger issue (for investors) is that no one has been able to demonstrate an AI “moat” which would allow a company to gain any traction. Without a moat, customers can jump ship the instant a competitor offers a better model.
As long as they’re all just LLMs with the same design im not sure they’ll get a moat.
Someone will likely need to depart from the current thought process and come up with something new that is the next leap, but also not have how it works leak.
Like the next big thing after transformers, before anyone else catches on. Im sure they all have people researching new ideas.