"OpenAI is planning to spend more than $1 trillion in AI infrastructure buildouts - an enormous commitment, especially considering its meager income. Long term, it desperately needs revenue. For now, the vast majority of the money it's actually bringing in is coming from paying ChatGPT subscribers - and while OpenAI CEO Sam Altman boasted last week that 800 million people are using the AI chatbot on a weekly basis,"
"And even ChatGPT revenue may already be plateauing, in what could turn into a major inflection point for an industry already struggling to justify its astronomical spending amid fears of an enormous AI bubble. According to a Tuesday blog post by the Deutsche Bank Research Institute, first highlighted by Fortune, "European spending on ChatGPT has stalled since May, suggesting the poster child for the AI boom may be struggling to recruit new subscribers to pay for it.""
OpenAI intends to invest more than $1 trillion in AI infrastructure buildouts despite limited current income. Most revenue currently comes from ChatGPT subscriptions, yet only about five percent of weekly users subscribe. Deutsche Bank analysis shows European spending on ChatGPT stalled since May and subscription value has flatlined in major European markets after early 2023 surges. Europeans spend more on ChatGPT subscriptions than on Disney Plus, and at current growth rates ChatGPT could surpass Spotify by mid-2027 and Netflix by early 2028. OpenAI has committed to 26 gigawatts of computing capacity through contracts with Nvidia and AMD.
Read at Futurism
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