OpenAI is pursuing a new funding round valuing the company at $340 billion despite not expecting profits until 2029. This push comes after the emergence of DeepSeek, a competitor whose new AI model threatens OpenAI's market position. DeepSeek's cost-effective technology has prompted skepticism about OpenAI's future. OpenAI intends to use part of the new funding for commitments to Trump's AI initiative, Stargate, which aims to raise up to $500 billion. The tech industry has reacted negatively to these developments, leading to a significant market sell-off.
OpenAI, despite its soaring valuation expected to reach $340 billion, is set to remain non-profitable until at least 2029, according to market analysts.
The recent success of DeepSeek, a Chinese startup, has unsettled the AI landscape, showcasing an alternative with cost-effectiveness and efficiency that OpenAI may struggle to match.
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