If You Were Bankrolling OpenAI, the Percent of ChatGPT Users Willing to Pay for It Might Make You Break Out in a Cold Sweat

"OpenAI CEO Sam Altman has committed to spending more than $1 trillion to build out AI infrastructure, totaling 26 gigawatts of compute capacity from tech companies including Nvidia, AMD, and Oracle, according to the Financial Times' calculations. And that's just over the last month. Recouping these astronomical costs isn't just OpenAI's problem, either - vast portions of the wider economy are relying on OpenAI's success, highlighting growing concerns over an AI bubble that could have sweeping implications for the rest of the economy."

"For now, the company is desperately trying to build out new revenue lines and taking on even more debt to keep things running. It's looking at advertising online, monetizing its new text-to-video AI generator app Sora, and leaning into online shopping. The company is also working on a new personal device with the help of former Apple designer Jony Ive."

"But whether any of that will sufficiently grow its income to make a dent in the enormous amount of money it's planning to spend in the next five years remains anything but certain. The numbers are certainly far from confidence-inducing. OpenAI boasts that it has 800 million ChatGPT users. That's impressive, but only a tiny sliver - roughly five percent - of them are actually paying for a subscription, according to the FT 's sources at the company."

OpenAI committed to spending more than $1 trillion to build 26 gigawatts of compute capacity from vendors including Nvidia, AMD, and Oracle. Massive infrastructure expansion creates significant financial strain and raises concerns about an AI-driven bubble affecting other sectors. OpenAI is pursuing new revenue streams and taking on additional debt, exploring advertising, monetizing the Sora text-to-video app, expanding online shopping, and developing a personal device with Jony Ive. The service reports 800 million ChatGPT users but only about five percent subscribe. OpenAI doubled revenue year-over-year yet lost $8 billion in the first half of the year, leaving profitability uncertain.

Read at Futurism