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Nawal

Entrepreneur | Build... • 8m

OpenAI is expected to face significant losses of approximately $44 billion before achieving profitability in 2029. A recent report from The Information sheds light on OpenAI's financial situation, revealing several key points: 1. OpenAI is unlikely to reach profitability until 2029. 2. The company is forecasted to lose $5 billion in 2024, with losses escalating to $14 billion by 2026. 3. Microsoft, which holds a 20% revenue share, will earn regardless of OpenAI’s profitability timeline. 4. Training models is 1.5 times more expensive than operating them, making the process of building foundation models especially challenging. 5. A substantial $300 million is allocated to Sales & Marketing—evidently, Sam Altman isn’t handling all the promotion alone. It seems like investors are in for a long, bumpy ride!

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