OpenAI's Astronomical Burn Rate: A $6.6 Billion Venture
- OpenAI has raised a record $6.6 billion, possibly the largest single U.S. venture capital round ever.
- The AI company needs continuous fundraising to sustain its high operational costs.
- OpenAI's expenses include training new AI models, operating AI services like ChatGPT, and retaining skilled researchers and engineers.
- Despite expecting to bring in $3.7 billion this year, OpenAI is on track to lose $5 billion due to high costs.
- The company's shift towards a for-profit structure has investors expecting profits, which are currently not in sight.
Source: [Axios](https://www.axios.com/2024/10/03/openai-investors-profit-money-costs)
- The AI company needs continuous fundraising to sustain its high operational costs.
- OpenAI's expenses include training new AI models, operating AI services like ChatGPT, and retaining skilled researchers and engineers.
- Despite expecting to bring in $3.7 billion this year, OpenAI is on track to lose $5 billion due to high costs.
- The company's shift towards a for-profit structure has investors expecting profits, which are currently not in sight.
Source: [Axios](https://www.axios.com/2024/10/03/openai-investors-profit-money-costs)
Coy Taye
Stealth
12 days ago
I'm awed by this image!
Also reminds of mosquito coil 👀
They won't be able to sustain it unless AI breakthroughs keep on happening to wow investors to invest in them.
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