What You Need To Know For October 10th

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Welcome Back! Let’s get into it!

The Main Stories 🔍

Here’s the latest on Hurricane Milton:

Our thoughts and prayers are with everyone stuck in Florida right now. Hurricane Milton remains extremely dangerous despite being downgraded to a Category 3 Storm, making its way into western Florida as this newsletter is sent out. Some are estimating that Hurricane Milton could cause as much as $175 billion in damage.

Given the situation is constantly changing, here’s the live updates feed as the hurricane hits Florida.

OpenAI expects to be insanely unprofitable for the rest of the decade: The Information has reported that OpenAI doesn’t expect to be profitable until 2029 and losses will triple to $14 Billion in 2026!!! In 2029, they’re expecting Revenue to be $100B - so think about how high this cost structure is…they need to hit $100 Billion of revenue to even be profitable….Here’s a look at their revenue forecast, which is relatively bold compared to 2024E Revenue of $4 Billion.

Below is a look at OpenAI’s current cost structure, which shows a very bloated cost structure that doesn’t even include stock-based compensation (which eventually becomes a cash cost). While we remain impressed by OpenAI’s innovation, we are skeptical on the ability to run at such a massive operating loss given they’re far from the only player in the market.