OpenAI has a bold plan to pay for its $1 trillion spending spree: Ads, personal assistants, and cheaper subscriptions

"OpenAI has lined up more than $1 trillion in spending - and now it's trying to figure out how to pay for it all. Over the last few weeks, the AI leader has signed a $300 billion contract with Oracle as well as multi-billion dollar deals with Nvidia, AMD, and Broadcom. Reports of this huge spending spree have echoed across the AI industry, fueling concerns that the bubble is about to burst. If bullish AI companies can't pay their bills,"

"infrastructure providers could find themselves out of pocket. And no wonder there are concerns. Though these deals are staggered over several years, OpenAI last year posted revenue of about $10 billion. While that's expected to double this year, that's still a far cry from being able to cover such bills - and don't forget that this time last year OpenAI was scrounging up $6 billion from investors to stay in business."

"OpenAI has plans to pay for it all, according to reports from the , which note that about 70% of OpenAI's $13 billion in annual recurring revenue comes from consumer versions of ChatGPT. Indeed, in January CEO Sam Altman said the tech giant was "currently losing money on OpenAI Pro subscriptions" because people used them so heavily. Given that, the first goal is to double the number of paying subscribers from just 5% of the total 800m or so globally,"

OpenAI has committed more than $1 trillion in multi-year infrastructure spending, including a $300 billion contract with Oracle and large deals with Nvidia, AMD, and Broadcom. Last year OpenAI posted about $10 billion in revenue, expected to roughly double this year, while previously raising $6 billion to stay afloat. About 70% of OpenAI's $13 billion in annual recurring revenue comes from consumer versions of ChatGPT. The company aims to double paying subscribers from roughly 5% of 800 million users by expanding cheaper access. Additional revenue plans include an in-ChatGPT checkout, selective advertising, and offering AI infrastructure improvements and products.

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