"Despite its half-a-trillion-dollar valuation, the reality is that OpenAI is almost certainly burning through cash at an alarming rate. According to recent filings, the ChatGPT maker lost a whopping $12 billion last quarter alone. Yet, it wants to spend well over $1 trillion over the next several years, once again stoking fears over an AI bubble that could wipe out the entire US economy if it were to burst."
"Even its AI video-generating app, Sora, which debuted in late September, is likely costing the company an astronomical amount of money to run, as Forbes reports. The app - which is currently being used to spew a disturbing quantity of largely meaningless AI slop onto the web, but is still only available for a minuscule number of early users - could already be costing the firm $5 billion a year, or roughly $15 million per day, according to the publication's estimates."
OpenAI reported a $12 billion loss in the last quarter and plans to spend over $1 trillion in the coming years. The company faces high financial exposure that could contribute to systemic risk if an AI market bubble bursts. The Sora AI video app likely consumes extraordinary compute, possibly costing about $5 billion annually or roughly $15 million per day, with a single ten-second clip estimated at $1.30. Producing AI video is far more resource-intensive than text generation and increases operational costs and carbon footprint. Company representatives described Sora's economics as completely unsustainable. The app also raises unresolved copyright and monetization challenges.
Read at Futurism
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