"Google and Meta already have successful businesses doing other things, but OpenAI doesn't. That hasn't stopped it from committing to spend well over $1 trillion before the end of the decade, an astronomical and extremely risky bet on scale even as its revenue lags. Users have shown a low willingness to pay for ChatGPT subscriptions, and the company has only begun exploring other revenue-generating avenues."
"The AI industry continues to pour tens of billions of dollars into resource-intensive models and the infrastructure to run them. In the face of it all, their promises of kickstarting a technological revolution that could one day be immensely profitable remain convincing enough for investors to prop up sky-high valuations - at least for now. But actually turning a profit is likely many years away for the vast majority of AI companies, and that's if it ever comes."
The AI industry is investing tens of billions into resource-intensive models and the infrastructure required to run them, sustaining high valuations despite uncertain near-term profits. Most AI companies are unlikely to turn a profit for many years, if ever, producing debate over who will benefit as Google, Meta, and OpenAI race for dominance. Google and Meta leverage profitable legacy businesses; OpenAI lacks that cushion yet has committed to spend well over $1 trillion this decade. ChatGPT subscriptions show low willingness to pay and revenue avenues remain limited. A forecast warns OpenAI could exhaust funds within about 18 months unless it secures new financing or revenue.
Read at Futurism
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