Wednesday, October 8, 2025

Latest

Is OpenAI Running Out of Funds?

OpenAI, the company behind the AI chatbot ChatGPT, may be facing significant financial challenges according to a recent report by The Information. The report suggests that the artificial intelligence firm is on track to lose up to $5 billion in 2024.

The analysis, based on undisclosed financial data and insider information, indicates that OpenAI’s expenses are projected to reach astronomical figures. The company is expected to spend approximately $7 billion on AI training and an additional $1.5 billion on staffing in the coming year. 

These expenditures are substantially higher than the company’s competitors. In comparison, Anthropic, which runs the chatbot Claude, anticipates a burn rate of $2.7 billion for the same period.

But that doesn’t mean that the Amazon (Nasdaq: AMZN)-backed firm is doing any better. The Information estimates Anthropic’s revenue to be about a fifth to a tenth of OpenAI’s but it may be losing half as much as OpenAI.

OpenAI’s rapid growth since launching ChatGPT in November 2022 has been accompanied by equally rapid spending. The company has raised over $11 billion through seven funding rounds, but it may still need to secure additional financing within the next 12 months to maintain operations.

Also read: Sam Altman’s Nearly $40-Million Bet: UBI Study Reveals Giving People Free Money Is A Flop


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Fortune Bay: The Potential Billion Dollar Project

Japan Gold Enters New Chapter as Barrick Alliance Concludes – John Proust

Barrick Mining’s “Company Defining [Gold] Discovery”

Recommended

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

ESGold Secures $9 Million In Non-Dilutive Funding From Ocean Partners

Related News

C3.ai Stock Gets Hit With A Short Report

Generative AI is going to be a really hot sector. The way the stock market...

Monday, April 10, 2023, 01:30:00 PM

Shopify Employee Breaks NDA To Reveal Firm Quietly Replacing Laid Off Workers With AI

In a Twitter thread, a Shopify (TSX: SHOP) employee has broken their non-disclosure agreement (NDA)...

Thursday, July 20, 2023, 10:30:28 AM

Shareholders Sue Kerrisdale Over C3.AI Short Report That Led To $1 Billion Loss

Shareholders of C3.ai (NYSE: AI) sued a short seller for releasing a letter that allegedly...

Thursday, April 13, 2023, 07:26:00 AM

US Blocks TSMC’s China Shipments of Advanced AI Chips

The US Department of Commerce has directed Taiwan Semiconductor Manufacturing Co to stop shipping advanced...

Monday, November 11, 2024, 02:58:00 PM

Lawyer Used ChatGPT For Court And Now He’s In Trouble

A New York lawyer is facing his own court hearing after his business utilized the...

Tuesday, May 30, 2023, 12:43:00 PM