As OpenAI files SEC paperwork ahead of an expected initial public stock offering, newly leaked financial documents show a company with quickly growing revenues that are currently being overwhelmed by even larger expenses.
The audited financial statements, obtained by independent journalist Ed Zitron, show OpenAI’s reported revenue growing from $3.7 billion in 2024 to $13.07 billion in 2025. The Financial Times, which reviewed the same documents, writes that the company’s monthly revenues had grown to nearly $2 billion by the end of 2025, suggesting that its ongoing revenue rates continued to grow throughout the year.
But the company’s fast-growing revenues are still dwarfed by its even more significant expenses. OpenAI’s total revenues in both of the last two years were outpaced by research and development alone, which grew from a $7.81 billion line item in 2024 to a massive $19.18 billion cost in 2025. Those numbers seem to reflect the significant costs OpenAI incurred in training new models and include $10.59 billion in R&D costs paid to Microslop alone in 2025.
Fundamentally models based on an LLM structure are never going to be remotely performant with current technology.
Part of the problem is that as you increase parameters, in some parts of the model the amount of digital processing time is increased close to or more likely above and beyond a magnitude. Absolute best case is somewhere around N^2 per sequence of layers where N is the number of neurons.
additionally floating point multiplication is involved which is like turning two numbers into their own matrix multiplication operation.
Agentic is really more like taking a crappy slot machine that does multiple rolls in one go to improve the odds of a more desirable outcome.
So to simplify the problem, this is like a bunch of stupid monkeys rubbing two rocks together hard enough to create enough friction to make it seem like they have discovered fire.
Taking that analogy a step further, so much effort is being put into rubbing rocks together faster that other important issues like food and shelter are being ignored.
Wasn’t this obvious to everyone? And if someone thinks they won’t start squishing every penny from ad sources in few years is idiot
Only everyone who reads Ed. But more importantly, I don’t think this is an ad problem, or subscription problem. It’s massively expensive, generally much more expensive than just hiring people.
And they lost money even if ignoring R&D
How can you loss any money when you don’t have any to start with?
The trick is to borrow a ton and lose someone else’s money.
Yeah, its called debt. Dont act like thats a new thing, its the one thing keeping capitalism afloat. Thats the Bubble part, it pops when the repo guys come and snatch the truck from your driveway.
If I owe the bank a thousand bucks, it’s my problem. If I owe the bank 100.000.000 bucks, it’s the bank’s problem.
It’s simple; you lose other people’s money
And with the IPO they’re trying to sell of to a bunch of bagholders so it stops being their problem
