OpenAI’s CEO Sam Altman has pledged over $1 trillion to build out its AI infrastructure, with 26 gigawatts of computing power from top tech companies like Nvidia and Oracle. This massive investment is causing growing concerns about an “AI bubble” that could affect the entire economy.
To stay afloat, OpenAI is exploring new revenue streams, such as online advertising, monetizing its text-to-video AI generator app Sora, and investing in online shopping. However, it’s unclear if these efforts will be enough to generate significant income.
Despite having 800 million users, only about five percent of them pay for a subscription, which raises questions about the company’s ability to turn a profit. OpenAI is still hemorrhaging cash, losing $8 billion in the first half of the year despite doubling revenue.
Experts worry that there isn’t a solid plan to make OpenAI a sustainable business. The company is relying on its partners to take on some of the expenses, and its personal AI chatbot device project with Jony Ive is uncertain.
The high stakes are clear: capital expenditures for AI have contributed more to US economic growth than consumer spending combined. A collapse could have severe consequences for the economy. For now, OpenAI’s focus is on growing revenue, but stopping the bleeding isn’t a top priority for CEO Sam Altman.
Source: https://futurism.com/artificial-intelligence/openai-percent-chatgpt-users-pay