OpenAI Doesn’t Expect to Be Profitable Until 2029

OpenAI‘s backers are a long-ish way from making money. Recent financial projections indicate the AI powerhouse won’t turn a profit until 2029. This timeline presents a significant test of investor patience and confidence in the company’s long-term potential.

According to documents obtained by The Information, OpenAI anticipates substantial losses in the coming years, potentially reaching $14 billion annually by 2026. The company projects cumulative losses of $44 billion between 2023 and 2028, highlighting the massive capital requirements of cutting-edge AI development.

The company’s ambitious plans, which have also been described as a fever dream, include reaching $100 billion in annual revenue by 2029, coupled with approximately $200 billion in expenditures through the decade’s end.

For investors, including Microsoft which is reportedly entitled to 20% of OpenAI’s revenue, the company’s ability to deliver groundbreaking AI advancements will be crucial in justifying its massive valuation and maintaining investor confidence during years of projected losses.

OpenAI recently secured $6.6 billion in funding from backers including tech giants Microsoft (Nasdaq: MSFT) and Nvidia (Nasdaq: NVDA), valuing the company at $157 billion.


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.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Nvidia Stock Falls As Challenger AI Chipmaker Cerebras Files For IPO

Cerebras Systems, a high-powered AI chip startup challenging Nvidia (NASDAQ: NVDA), has filed confidential paperwork...

Friday, June 21, 2024, 09:53:32 AM

X Complicated: Microsoft, Meta Already Own Trademarks to Twitter’s New Brand Name

Elon Musk’s decision to rebrand Twitter as X could potentially lead to more legal woes...

Tuesday, July 25, 2023, 03:29:00 PM

Are Humans Doomed to Destroy ChatGPT?

Humanity has always been afraid of artificial intelligence. We recognize its ability to fundamentally transform...

Monday, February 6, 2023, 02:17:00 PM

Stanford Student Finds That Academics Are Abusing ChatGPT

Software developer and student at Stanford University Andrew Gao has spotted something peculiar about recently...

Tuesday, August 15, 2023, 08:15:00 AM

Meet ChaosGPT, the New AI Bot Created to Destroy Humanity and Establish Global Dominance

If this made it to the Internet, it’s safe to say that ChaosGPT has yet...

Thursday, April 13, 2023, 10:58:00 AM