Cashburn is like projecting profit but instead of profit you are just going to burn the pool of money you have so much your profits won’t mean anything. Anything black on this line is profit, red is cash burn. All companies start in a cash burn state, but if you look at the ones listed, the initial cash burn when they launched was relatively small.
OpenAI is planning to burn more money than most of them profited.
I could be completely wrong here, but it looks like the chart is comparing companies that go into debt to get started, and then make back that profit once their service/product is out there. OpenAI presumably has made zero profit yet, so they’ve only accomplished going $218B in debt.
I dont understand anything from this. Can someone explain?
Cashburn is like projecting profit but instead of profit you are just going to burn the pool of money you have so much your profits won’t mean anything. Anything black on this line is profit, red is cash burn. All companies start in a cash burn state, but if you look at the ones listed, the initial cash burn when they launched was relatively small.
OpenAI is planning to burn more money than most of them profited.
9.3 billion isn’t small. 218 billion is just stupid.
I could be completely wrong here, but it looks like the chart is comparing companies that go into debt to get started, and then make back that profit once their service/product is out there. OpenAI presumably has made zero profit yet, so they’ve only accomplished going $218B in debt.