“cost of revenue” sounds like “cost of goods sold” in a business with tangible products. Rather. It cost $6 of cloud to sell that $34 service
R&D can probably be amortized over the lifetime of the product, in this case the model’s useful sellable lifetime. But a chunk of that is renting compute from MS and the bill’s due.
Doesn’t sound any more fishy than any other business throwing $b around.
“cost of revenue” sounds like “cost of goods sold” in a business with tangible products. Rather. It cost $6 of cloud to sell that $34 service
R&D can probably be amortized over the lifetime of the product, in this case the model’s useful sellable lifetime. But a chunk of that is renting compute from MS and the bill’s due.
Doesn’t sound any more fishy than any other business throwing $b around.
It looks a lot like round-tripping to me, big chunks of that money being spent on OpenAI was invested by MSFT in the first place.
“I’m making a capital investment in open AI, oh look an equal amount came back in as expenditures on my cloud service!”
Oh totally that. That’s how all the big guys goose their numbers.