Pundit ClaimsAI claims by Gary Marcus and Ed Zitron, with the evidence

“OpenAI may make billions, but it has yet to turn any kind of profit, and its operating costs vastly surpass any revenue it gets from licensing its technology or selling premium memberships.”

They're Looting The Internet, paragraph 58.

Our reading:

OpenAI has not turned a profit, and its operating costs vastly exceed its licensing and subscription revenue.

Assessment: Unresolved

What happened

Was it true for the period described?

Outcome: Unresolved

We checked, and the evidence so far doesn’t settle it.

Judged on a plain reading. They named no measure, so we used the reading a typical informed reader would take. It is spelled out under “How we judged it”.

Evidence up to . Checked .

Why

On June 13, 2024, Maginative reported that OpenAI had projected a $1 billion operating loss for calendar 2023 and had not disclosed updated figures [e1]. That projection does not establish realized 2023 operating costs or their excess over licensing and subscription revenue [e1]. The report also does not establish a complete profitability history through April 15, 2024, so neither part of the claim is settled [e1].

Caveats

  • The evidence is a secondary report of a projection, not a realized operating result [e1].
  • It supplies no matched 2023 operating-cost and licensing/subscription-revenue figures on a common accounting basis [e1].
  • It does not establish whether OpenAI had ever earned a company-level profit before publication [e1].

Evidence (1 item)

  • Context only: Maginative,

    projected

    Why it matters: This reports a projection for the relevant year, not its realized result. It makes losses plausible but cannot establish actual costs, the specified revenue comparison or the complete profitability history.

    Publisher
    Maginative
    Kind of source
    Secondary summary
    Measures
    OpenAI, Projected annual operating loss, USD billions, estimate, 2023-01-01 to 2023-12-31
    About events on
    Published

How we judged it

Kind of claim
Observation
Deadline
None given. We don’t add one.

Where we had to interpret

  • Read profitability as company-level earnings after costs, rather than positive revenue or financing.
  • Read the cost comparison as operating costs substantially exceeding realized licensing and subscription revenue over the same period.
  • Use calendar 2023, the latest completed annual period before publication, for the ongoing operating-cost comparison; the post names no reporting period.
  • 'Has yet' additionally claims an absence of prior profitability through publication; one annual loss cannot establish that entire history.
  • No accounting basis or attribution to company figures or press estimates is supplied in the quoted claim. Record the basis as unknown.
  • Do not impose an arbitrary numerical definition of 'vastly'.

Right if: Matched financial records establish a substantial operating-cost excess over realized licensing and subscription revenue, together with a sufficiently complete history showing no company-level profit before publication.

Wrong if: Comparable records establish prior company-level profitability or show that operating costs did not substantially exceed the specified revenue in the target period.

We wrote this test after the outcome was known.

What would settle it

Financial records showing realized calendar 2023 operating costs and licensing/subscription revenue for the same entity and accounting basis, plus company-level earnings records through April 15, 2024. These could establish the claimed cost excess and absence of prior profit, or show a contrary result.

We found 23 claims in this post. See them all.

Full record

Source and dates

Where's Your Ed At, They're Looting The Internet, paragraph 58.

Said
We read the source
live page, full text, public
Evidence up to
Checked

We read this wording on 2026-10-28. The post may have been edited after 2024-04-15.

Where it was said (1)

Said once in the posts we read.

  • : Where's Your Ed At, They're Looting The Internet

    OpenAI may make billions, but it has yet to turn any kind of profit, and its operating costs vastly surpass any revenue it gets from licensing its technology or selling premium memberships.

    Published
    2024-04-15
    We read it
    , live page
    Access
    full text, public

History

Versions

  • Current: Unresolved. Evidence up to 2026-10-28.

What happened to this record

  1. PublishedBy us

    Published after both AI reviews and the final check passed.

  2. Held backBy us

    The final check failed: a cited source didn’t say what the write-up said, and the write-up said more than the evidence showed.