OOF: OpenAI’s financials have leaked, showing $21 billion in losses against $13 billion in revenue. “Is there a path to profitability? Maybe. OpenAI’s two biggest expenses are R&D and marketing. Budget cuts there, coupled with an ability to raise prices or win new sources of revenue, could see the company move into the black over time. Cutting R&D would be the most difficult part of that, given that AI companies can only hold onto their customers by generating the best-performing models.”

Switching is easy and cheap for customers, retaining them is difficult — and expensive.