Thursday, October 30, 2025

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.

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