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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!

27 Replies

Replies (27)

l m

Proving Paradoxes fa... • 8m

[This post has been deleted by the creator]

1 Reply

Arcane

Hey, I'm on Medial • 8m

One reason for the heavy costs of training and operating AI models is the power hungry data centers. And the costs are only going to increase going forward. OpenAI needs to be careful with that

1 Reply

BigLoot IN

BigLoot.in - Where S... • 8m

But in future it will also earn a lot of profit

1 Reply

Anonymous 2

Hey I am on Medial • 8m

Losing $44 billion by 2029? That sounds risky. Investors might be questioning if it’s worth waiting so long for profits I mean, i definitely would. Wow. Damn, that's as much as twitter. Fuuuuuuu

1 Reply

Anonymous 1

Hey I am on Medial • 8m

It’s impressive that OpenAI is pushing forward despite the losses and people leaving.

1 Reply

Anonymous 4

Hey I am on Medial • 8m

MS as investor means " baap ka paisa hae"

1 Reply

Anonymous 3

Hey I am on Medial • 8m

Bro I mean if such imp people left and it still works like normal then were those people even needed lol.

1 Reply

Havish Gupta

Figuring Out • 8m

Losses worth $44 Billion dollars 🤯 It's like casually loosing Twitter in few years

1 Reply

Minnu Teja Y

Lazy* Learner for Li... • 8m

They could see a rise in +ve numbers if they lower their plus subscription fee. I mean, come on! Who's gonna pay almost 2000 a month for an AI tool? Not many. But if the prices were cut down, I think many users would subscribe! Maybe add plans like family and students too.

1 Reply

Ravi Ranjan

Noob Entrepreneur 🤓 • 8m

I use both Chatgpt and Google gemini and I feel more comfortable using Gemini

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Chamarti Sreekar

Passionate about Pos... • 1m

I was listening to Bloomberg today. Did you know OpenAI is sitting at 3 TIMES its projected earnings for 2029…TODAY? 300 BILLION.

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SoftBank is planning to invest $25 Billion in OpenAI.

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