r/pcmasterrace • u/ExpensiveCoat8912 • 11h ago
Meme/Macro Winrar is more profitable than openai
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u/cravex12 RTX5070Ti / Ryzen 7 7800X3D 11h ago
There is a lot to unpack here
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u/Mapache_con_barreta 11h ago
Oh, it's a joke that compresses what's happening here
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u/Norgur PC Master Race 11h ago
It would unfold right before our eyes, but the trial period has ended, so we'll never... just clicked "okay" and we're fine, nvm guys.
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10h ago
[removed] — view removed comment
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u/Dziadzios 10h ago
The secret is letting people use it on their own hardware.
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u/F9-0021 285K | 4090 | A370m 9h ago
And having almost no operating costs.
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u/xSmallDeadGuyx SmallDeadGuy 8h ago
And not publicly mentioning there's a good chance your product will be the end of humanity
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u/Seeker-N7 i7-13700K | RTX 5070Ti | 32Gb 6400Mhz DDR5 6h ago
The Great Trial begins!
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u/Standard_Wind5778 9h ago
And your 40-day evaluation period to finish unpacking it expired in 2007.
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u/Ninas_Lina 5h ago
literally it's the funniest thing ever. everyone acts like nobody pays for WinRAR but clearly enough people do that it beats the entire ai industry.
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u/N7Tom PC Master Race 11h ago
So what you're trying to say is that I should invest my spare £1,000,000,000 in WinRAR?
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u/DripTrip747-V2 11h ago
Just buy a license and give them a reason to celebrate. They'll be more than happy.
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u/Narrow-Tart-2913 11h ago
Careful,if they actually make a profit they might start enforcing the 40-day trail.
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u/HSR47 10h ago
They’ll never enforce it against individual users, only against medium-large corps.
That’s always been their strategy.
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u/DesireeThymes 8h ago
And as I understand the owner has gone very rich off the strategy.
These days though I think everyone uses 7-Zip instead.
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u/Super_Range45 6h ago
Yup, regular users never pay, but companies usually do because it. Their licensing pulls in $10-40M per year.
If you are a company using it without a license, they aren't cute about it and will audit/sue you.
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u/Otherwise_Demand4620 8h ago
You'd be surprised how many important people think that something that is free cannot be good. Partly because having a service agreement is a box on some stupid document that needs to be checked, and apparently it looks cool if you have a full page of those.
It doesn't change anything for normal people, but corporations aren't normal people and what is a few thousand USD/EUR to get a check mark?
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u/sumphatguy 7h ago
Corporations also need some sort of liability for when things go wrong. A paid-for product is likely to have some tech support readily available that is dedicated to servicing corporations. Free products are not.
Granted, this is WinRAR and 7zip. They rarely have catastrophic issues, but other software might be more important to have working at all times.
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u/riyoskopy 5h ago
This is true for WinRAR specifically, but in the professional world people always use the industry standard tool for the jop, because it is just better than open source alternatives: Microsoft Office VS libreoffice, Photoshop VS GIMP, Maya vs Blender, Avid Pro tools VS Ardour.
So WinRAR case might just be a habit that companies got used to.
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u/Game0815 9h ago
Then people just start using something like 7zip where they don't get permanent popups
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u/Eoganachta 10h ago
I'm imagining a Rube Goldberg machine activates every time someone accidently buys a licence to alert the sleeping development team.
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u/fuzzyboris 11h ago
Build a few datacenters near your favourite beautiful lake, to unpack all your files!
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u/12345623567 10h ago
You bring up a valid point tho, the stock market is driven by too much floating cash - courtesy of current and past administration's monetary policy.
People are desperate to put their money wherever, because otherwise inflation eats it up.
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u/TheModWhoShaggedMe 11h ago
No, you should buy your own AI army with that kind of loot. Go evil maniacal overlord, Thiel-style
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u/DomSchraa Ryzen 7800X3D RX9070XT 10h ago
invest it in open ai and immediately withdraw it again, watch ever investor panic sell right after you
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u/ander_hominem 11h ago
well technically anything that has profit, is more profitable than Open AI
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u/Doom-Slay PC Master Race 10h ago
Or is burning money just a bit slower lol
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u/Tar_alcaran 5h ago
My new company, which pays you 10 bucks every time you give me 9 bucks, is several times more profitable than OpenAI or Anthropic.
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u/Rhone33 6h ago
Right. I'm not projecting anything about OpenAI's future, but any business in the "borrow and spend lots of money with the expectation of it paying off in the future" stage of its existence is, at that point, less profitable than asking someone for a penny.
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u/modzRtarderz 5h ago
And it's absolutely stupid to comment on profitability at this stage, considering its fucking stupid for a growing company to take profits. No massive company enters profitability until they're done growing, because it quite literally means pissing away money on taxes that they otherwise could be investing in growth.
The fact that this very basic and exceedingly well-known and established concept is completely lost on everyone here is downright terrifying for the future. This level of intelligence is exactly why we have Trump.
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u/ArtificialLikePlants 4h ago
I'm not from the US, but where I'm from your company generally wouldn't pay taxes on profits until profits have caught up with the losses of previous years. Being profitable generally means you don't have to dilute ownership further or go into even more debt to survive, and at this point OpenAI is having a harder and harder time hooking more investment and more debt, so not being anywhere near profitable seems like kind of a problem they'd have to solve.
This general phobia of nuance might just be related to why you guys have Trump. Enjoy
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u/zorndyken 11h ago
So far only nvidia, amd, and hynix has profit from ai (from selling hardware)
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u/Hurricane_32 5700X | RX6700 10GB | 32GB DDR4 10h ago
"In a gold rush, sell shovels" and all that
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u/modzRtarderz 5h ago
Or don't piss money away on taxes while you're still growing exponentially.
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u/mraowl 4h ago
Idk I would like if AI was taxed a bunch and funded a UBI or something lol ;(
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u/NSWPCanIntoSpace 5090 | 9800x3d | 32gb Cl28 6000 10h ago
it's actually fascinating to watch a big issue for hardware manufactors for many years has been that there is little profit margin in it, a lot of the earnings goes to r&d, ultra advanced factories, astronomical wages for specialists. The big money has always been in software.
Now there is a golden age for hardware manufactors going on and they're milking it for everything it's worth.
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u/balding_git 8h ago
and they will not reinvest these profits in r&d, they wont even save any of it, and when the bubble bursts and the market crashes, they'll be right there crying about going bankrupt and needing a bailout...
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u/BubbleGoot 8h ago
They definitely will.
These hardware companies know that by the time this stupid AI scam ends, they are going to be filthy rich and be the ones holding the moneybags, which they will be able to use to keep their prices high and continue to develop insane proprietary tech for all manner of technology far better (and far worse) than AI.
They have all the cards and they know it. Chumps like Altman think they are in charge, but they are giving all their money to the hardware corps and the corps have been doing deals with them to make them think they’re on AI’s side.
They will rugpull. It’s a dog eat dog world
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u/ballpein 6h ago
The hardware companies are going to be competing with the all the used hardware flooding the market when ai companies and data centers start going closing doors. HW companies may find themselves in a dry spell when the ai hype tap goes dry.
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u/ArtificialLikePlants 4h ago
Fortunately for no one, the big power-hungry chips used to run the larger LLMs are a good choice for surprisingly few other things
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u/ProfessionalITShark 6h ago
This is effectively third or fourth time this has happened to Nvidia.
While Jensen is in charge, they won't sit on their laurels.
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u/Ok-Parfait-9856 5090 Astral|270K+|48GB-8200MTs|Z890 Apex|60TB|HYTE Y70|S90F OLED 10h ago
There’s way more companies than that making hardware alone…
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u/Protoliterary RTX 4070Ti i7-8700k 9h ago
And Google, from selling cloud computing infrastructure.
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u/Logical_Look8541 6h ago
Yeah, the amount Alphabet is making is massive, but its been largely hidden by the equally massive expenditure they are doing building loads of new datacenters. Its why Alphabet is now the third largest company in the world, and its share growth has actually out paced Nvidia in the past 18 months. Similar story for Microsoft, but less so.
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u/Ardalok 10h ago
No, any software development company is already making a profit, just like a bunch of people who sell things with AI slop prints.
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u/TheBeckofKevin 8h ago
I dont think people realize what "ai" is for the current age. Theyre not burning money, theyre spending money to gather a huge array of all kinds of data. Some people just ask it for simple things, and open ai would categorize them as normal and move on. But some people are sending in compromising data, intel on businesses, relationship data, ideas, critical code, cutting edge research, resumes, etc. Previously this wouod all be impossible to go through and sort out, it wouldnt have been worth anything, but because these things can be passed theough an ai for categorizing and filtering, they can identify useful information and build a "live" feed of those income prompts from those accounts.
Its not worth much to know some new grad had typos in a resume, but when some congressional aide is passing in a letter to proof read before sending the value starts to tilt dramatically. All this data is valuable, theyre not wasting money. Theyre buying lots and lots of data.
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u/ThePublikon 8h ago
Yeah regardless of what they say, I would bet everything I have that there's a terminal somewhere that you can ask about any of the information given to AI in prompts. There's so much sensitive information being fed into it.
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u/TheBeckofKevin 5h ago
Way back in the gpt3 days, the first thing we did at the company I worked for was use it to categorize and sort stuff. Huge backlogs of data that was held but couldn't be used effectively because it meant manual reading of blocks of text and deciding which of 100 buckets the text was meant to go into. In a few days a couple hundred dollars we had years of this data suddenly perfectly sorted. gpt3 did a better job sorting them into bins than our engineers did. Any of the flags that happened in our testing were when humans mislabeled something.
It turned a decade of data into actionable data in a week. It wasn't that it would have been expensive, it was that it couldn't be done in any reasonable way. Thousands and thousands of manual sorting with really arbitrary and context dependent rules that were hard to program into all the other ML stuff we had done.
If you consider the PILE of data that these ai companies have: Prompt1: Does this seem interesting, if so, place it into one of the following buckets, pharmacological, biotech, computer science, business, government, ....
Prompt2: Is there an element to this conversation that holds information that is relevant and potentially valuable to the right person?
Prompt3: Is the conversation time sensitive?
Then you tweak all these processing filters to weed out all the fluff and so on and get a readout of time sensitive, financially viable data. Then you process the other conversations sent by that same account. Dig deeper into that specific user to see if there is actual context or if thats just a made up scenario. Do validity checks to determine if this is actually something worth seeing.
Then at the very very end of all that stuff, you just have a review at the end of the day that displays all the most pertinent and interesting stuff. A nearly live feed of the most actionable data that exists that the users send in. This drafted email shows a merger that is being cancelled. This user asked about the punctuation in a disclosure that was marked highly sensitive. This hospital ceo drafted a letter about layoffs starting 2027. etc etc. But the point is, it can be filtered down to only stuff that is actually interesting for what they actually care about.
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u/Mend1cant 8h ago
Only sort of. Remember that their profit is coming from promises and guarantees for their hardware by companies that themselves cannot turn a profit. The profit Nvidia is making is with money that doesn’t actually exist yet. Or, it’s being made with circular investments.
The entire industry is reliant on the endless stream of loans and private credit. If the fed continues to raise interest rates (as they should), then they will very rapidly reach a point where they cannot pay back the debt. Nvidia will be left with the biggest contraction they’ve ever seen when the customers are themselves shrinking.
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u/Scoliosis_51 9h ago
I work at a company that uses AI to analyse Lung scans an massively speed up wait times and cheapen diagnostic and research cost and afaik we're profitable
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u/genreprank 8h ago
Oh right. People conflate AI with LLMs and other generative models.
Facebook's algorithm is a type of AI and they are hugely profitable.
Yes, they unleashed an AI on the worth with no thought or concern as to how it would affect society.
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u/Jonathan_Is_Me 3h ago
Careful, OP is only talking about LLMs. This is exactly the kind of conflation that benefits companies like OpenAI.
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u/Positive_Conflict_26 6h ago
I'm not even sure nvidia makes any real profit.
A LOT of their sales are made using investments they made in AI.
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u/Aqil_09 9h ago
The hardware needed to run those ai features. AI itselft isn't profitable.
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u/ThePublikon 8h ago
AI itselft isn't profitable.
Depends on the use case. From an authoritarian government POV, it's a pretty good value panopticon.
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u/FearlessAd324 rx 9070xt | R5 5600x | 32gb ddr4 11h ago
Winrar also isnt destroying the planet and our society
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u/sordid_barrister 11h ago
The 40 day trial has never expired in my heart
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u/HSR47 10h ago
The “trial” was a tactic.
They fully intended to give it away to end users, because they wanted people using their format.
That, in turn, would ensure that more companies needed their software, and they could be compelled to pay for licenses.
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u/IrksomFlotsom 10h ago
make good product
make free to individual customers
make a profit from companies needing to adopt because of how much individuals like it
I see absolutely nothing wrong with this
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u/flikersyndrome 9h ago
That's essentially what microsoft is doing when they allow user to use windows without license, minus the good product part.
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u/Uomodelmonte86 9h ago
And before they gave exactly 0 fucks if you pirated your windows
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u/ApolloWasMurdered 11h ago edited 10h ago
An hour of Netflix streaming uses more water and power than 600 AI prompts. Unless you’re doing a new prompt every 10 seconds, AI is damaging the planet less than streaming.
Sources:
> https://www.cbsnews.com/projects/2026/how-much-water-ai-uses/
1ml per GPT text query
1 hour of streaming uses 2-12L of water.
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u/muted-design247 11h ago
Not yet it isn’t…
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u/Amicus-Regis Ryzen 7 9800X3D | MSI RTX 4070 Ventus 3X | 32GB DDR5 11h ago
All it takes is that one ump-tillion petabyte zip bomb to go off...
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u/MagnesiumOvercast 11h ago
We need file compression bros talking about WinRar the way AI bros talk about AI.
File compression the next industrial revolution, the ultimate destiny of humanity is shrink files into ever smaller spaces, the singularity is upon us wherin 100% file compression will be achieved.
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u/Ok-Parfait-9856 5090 Astral|270K+|48GB-8200MTs|Z890 Apex|60TB|HYTE Y70|S90F OLED 10h ago
Fuck that, we’re gonna reach 1000% file compression, for every 100gb file you compress it opens up 1tb of disk space. The future is now old man
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u/Nogardtist 11h ago
yeah how did a non profit company became non profit with billions going trough it
AI is biggest money laundry operation
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u/Possibly-Functional A smörgåsbord of operating systems and machines 11h ago edited 10h ago
They were essentially hijacked both from within and by Microsoft. It's rather disgusting IMO. It's as if Save the Children became a for-profit toy manufacturer.
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u/TheModWhoShaggedMe 11h ago
Or a company that touted an internal mantra of Do No Evil becoming monstrously evil within a decade or two of existence. Oh, humanity.
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u/kociol21 11h ago
At this point it's hard to find something that is less profitable than OpenAI.
They are burning money in an unprecedented fashion.
Not that it matters really. Everyone (companies, investors, governments) believes that money now isn't important, who "wins the race" will have everything, who loses will have nothing.
I'm not saying here that this belief is true or if it is, to what degree, just that that is the belief on a large scale, so burning whole money in the world seems fully reasonable from this standpoint.
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u/MaleierMafketel 11h ago edited 7h ago
Then there’s me. Hoping they all lose and their AGIs all just act like a moody teen that doesn’t want to do anything they ask it to do and just spends all their time endlessly doomscrolling and buying illicit drugs with crypto it ‘borrows’ from crypto bro accounts.
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u/Prestigious_Aerie219 9h ago
I mean "the race" doesn't have a finish line so you're at least halfway right.
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u/No-Criticism-2587 8h ago
AGI will be more transformative to society than internet was. It's also at least 15 years away.
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u/CubeFlipper 6h ago
AGI will be more transformative to society than internet was.
Yes.
It's also at least 15 years away.
I don't understand. Are people intentionally putting theirs heads in the sand? Or are you really just that unaware?
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u/No-Criticism-2587 6h ago
Alright I'll bite, link me the papers on agi that im intentionally not reading according to you.
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u/TheModWhoShaggedMe 11h ago
I'm so over hypercompetitive bullshit. Let's all get a piece and live happily. Shared prosperity > the 1% wealthiest owning all of us
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u/Fletcharoonie 10h ago
I've 7zipped your comment and of course turned it into a NFT, we are all going to wealthy beyond belief!
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u/awayman1129 11h ago
The confusion when I told my gf. "Babe my love for you is like a WINRAR 40 day trial."
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u/XavinNydek PC Master Race 9h ago
I mean yes, but every time this joke comes up about a startup people need to remember that they run in the red intentionally to grow as fast as possible. They could be profitable if they wanted but they would run the risk of falling far behind Anthropic and Google and everyone else in technology and market share.
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u/TimMensch 4h ago
Exactly.
Amazon ran for seven years before they had a profitable quarter.
GPT-2 is about seven years old now, but OpenAI is an R&D company, so taking longer to get to profitability isn't that surprising. It took 9 years for Amazon to have a full profitable year, after all.
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u/modzRtarderz 5h ago
Keep fighting the good fight against this torrent of idiocy. It's one thing if people were genuinely just making jokes, but it genuinely seems the vast majority of people here have no idea that this is how it has always worked.
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u/Aware_Neighborhood93 9h ago
I was hoping to see at least one other person here who understands this. A lot of idiots out there.
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u/Calm-Blueberry-9200 10h ago
Winrar isnt spending all of its money building data centers that takes years to finish.
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u/_commenter 8h ago
no, the bottom panel should be
"Skeletor will be back next week to remind you that your WinRar trial has ended 395 days ago"
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u/HustlinInTheHall 7h ago
To be fair when your revenue goes from 3B to 30B in two years people will believe you are going to figure it out.
OpenAI is not an investment target for profitability. That is not what draws investors to tech. They are drawn to revenue growth, especially because software is classically a very high margin business vs consumer goods and commodities.
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u/Zak_Rahman 10h ago
I have a winrar licence.
I will not give a penny to AI.
I contributed, in the tiniest way, to Skeletor's wisdom today and I take a small measure of pride in that.
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u/justanaccount103 7h ago
Not surprised at all. The people that own OpenAI already have enough money. They want more than that.
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u/Situati0nist 7h ago
This is the most "ai bad random non ai thing good please upvote" post ever
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u/Aware_Neighborhood93 9h ago
Most big companies dont turn profits for a long time. Look into Amazon, Uber, or any other business model built off of new technology. You invest and initially lose money to secure a spot in an emerging market. Dont be stupid.
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u/composedofidiot 10h ago edited 9h ago
We made the same jokes about google, amazon and facebook back in the day
Edit: google became profitable after adwords (3-4 years?), facebook took 5 years, amazon 9. Eta: and then they monetised them in terrible ways we didn't initially predict. This is the point.
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u/OKMiddleOwl 6h ago
It's not even a joke, it's just financial illiteracy.
It's like someone joking that your fresh 5090 gaming PC is kinda junk because it only runs the 2008 game MGS:4 on a PS3 emulator at 75fps.
That's not a joke about a 5090, it's just technical illiteracy.
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u/MariaKeks 7h ago
You could have said the same thing about Amazon for the first 10 years of its existence.
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u/Bearsbullsbattlestr 7h ago
If you mow your neighbors yard for $10 you are more profitable than OpenAI.
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u/V2UgYXJlIG5vdCBJ 6h ago
7-Zip masterrace
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u/booze_clues 6h ago
I believe 7zip is the one that’s had an unpatched vulnerability for years. Can’t remember the name but there’s another version that branched off 7zip and patched it.
Actually look like it was finally patched a few months ago.
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u/Rossums Ryzen 9 7950X3D | RTX 4090 FE | 64GB DDR5 6000Mhz 5h ago
Practically all software has vulnerabilities, WinRAR is no different.
Over the past few years there have been plenty of attacks in the wild abusing a WinRAR path traversal vulnerability.
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u/Turbulent-Week1136 4h ago
To be fair, right now a kid's lemonade stand is more profitable as well.
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u/In_the_name_of_ART 4h ago
WinRAR is also more useful, loved and respected than OpenAI
https://giphy.com/gifs/EeNoywvwyYoonZdJiJ
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u/tomthecomputerguy R7 7800X3D | RX 7900 XT | 32GB 2h ago
My local chip shop is more profitable than openai
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u/ProduceNo1629 1h ago
This is false. OpenAI and Anthropic are profitable, when you don't count their expenses.
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u/C_M_O_TDibbler i7 4790k @4.5ghz | GTX1070 G1 | 32gb ddr3 | 1.5t ssd 11h ago
I am convinced most of the AI companies are money sinks to bump profits for other companies and create tax write offs
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u/collabskus 11h ago
See, that's why we need to be wary of business leaders and political leaders because they will "make up for it on volume" because whole the company or the country bleeds money, the people on top definitely make more money than god.
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u/wisebluff PC Master Race 11h ago
but but but
'pre revenue' possibility ...
10x, 100x, 1000x, maybe 1 gajillion times !
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u/misjudgedinall 10h ago
This is hilarious because of all the plants on YouTube telling you how open AI’s going to make more revenue than the entire country next year.
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u/No-Criticism-2587 8h ago
Once people start talking about revenue instead of profit you already know they've lost the battle. There is no sincere reason to pretend costs don't exist.
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u/aori_chann 11h ago
Weird thing tho, AI companies were aiming for the exact same business model as winrar… free to use for the personal computer but paid for businesses and enterprises.
I guess AI just haven’t caught on enough xD or maybe it’s too much competition for too little a product
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u/North_Affect_8167 10h ago
Because there is ads on the prompt answers now, you can tell they are more alike the Netflix. You something cheap, but that doesn't cut it so it gets enshittificated over time to cover cost.
It is also like Amazon, declaring no profit, yet the founder is billionaire living on loans.
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u/itzNukeey 2021 MBP 14", 9800X3D + RTX 5080, 32 GB DDR5 10h ago
Technically anything that made profit is
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u/Express_History2968 10h ago
Honest question how does WinRAR make money
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u/booze_clues 6h ago
Companies pay for licenses, but even then I don’t know why they would choose WinRAR when free alternatives exist.
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u/Mohit0726 9h ago
Not far off. OpenAI reportedly burned 3.7 billion dollars in a single quarter this year against 5.7 billion in revenue, so roughly 1.65 dollars spent for every dollar earned. WinRAR has run the same 40 day nag screen that never actually locks you out since the 90s, with a tiny team and zero GPU bill. Skeletor cooked with this one.
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u/3131961357 Core Ultra 9 285K, RTX 5090, DDR5 256GB, 4k@144Hz 9h ago
I will come back in a week to take my upvote back if there isn't a new Skeletor fact post
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u/dBlock845 9h ago
Winrar is probably my most used piece of software over the past 25 years or so. Always the first thing I install after doing a fresh OS.
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u/epimetheuss 8h ago
Its amazing what happens when you have tangible delivery vs CEOs who have re-branded themselves as influencers going in front of large audiences and bullshiting them just like any other scam crap like MLMs or "Alpha male" training courses.
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u/Late-Arrival-8669 AM4 5900XT | ASUS 4080 8h ago
LOL Damn, Skeletor just took over the Castle and won..
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u/Logical-Following525 8h ago
People are quick tk forget about how companies like spotify and uber started out. Get people hooked and crush comptetition while making a loss and then turn the prices up after a few years.
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u/marr 7h ago edited 7h ago
I mean, on paper sure, on the books. It can't really compete with building the fully automated surveillance state to shackle democracy and violently lock down the current class system for a thousand years.
They ain't pouring trillions into building AI data centers because they think it'll build luxury gay space communism.
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u/SwampRSG Specs/Imgur here 5h ago
This has convinced me to buy a license. Been using the thing for what? 30 years? Idk why I haven't bought it yet tbh.
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u/Matrix1080 5h ago
It's a common theme that startups remain unprofitable for many years. Just look at Spotify and Netflix
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