Tuesday, August 5, 2025

Latest

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.

Video Articles

San Dimas: First Majestic Silver’s Sleeper Asset

New Gold Q2 Earnings: Record Free Cash Flow

STLLR Gold: The Tower Gold PEA

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Nvidia: BMO Raises Price Target To $750

Nvidia Corp (NASDAQ: NVDA) reported their fiscal third-quarter earnings on May 26th after market close....

Friday, May 28, 2021, 11:36:00 AM

Verses Pens Open Letter To OpenAI For AI Collaboration

VERSES AI (NEO: VERS) is attempting to grab the attention of OpenAi in a big...
Tuesday, December 19, 2023, 10:39:21 AM

Sam Altman Is Already In Discussions To Return To OpenAI

He may be down, but its not quite certain if he’s actually out. The Verge...

Sunday, November 19, 2023, 07:25:00 AM

Chinese Entities Still Acquire Nvidia Chips Despite U.S. Bans

In defiance of U.S. export restrictions, various Chinese military bodies, state-run artificial intelligence research institutes,...

Monday, January 15, 2024, 08:45:00 AM

Nvidia Takes $15B Hit as China Chip Restrictions Test US Tech Strategy

The escalating technology rivalry between the United States and China has dealt a severe blow...

Tuesday, May 20, 2025, 07:33:23 AM