"That's despite its revenue lagging far behind its enormous spending spree, with recently released Microsoft earnings suggesting that the Sam Altman-led company lost a whopping $11.5 billion last quarter. Even its blockbuster AI chatbot ChatGPT, which accounts for the majority of the company's revenue, appears to be stalling out on new subscribers. OpenAI is struggling to convince more than a measly five percent of its 800 million active ChatGPT users to pay for a subscription."
""How can a company with $13 billion in revenues make $1.4 trillion of spend commitments?" Gerstner asked him. "You've heard the criticism, Sam." "If you want to sell your shares, I'll find you a buyer," a taken-aback Altman replied curtly. "Enough." Surprised by the confrontation, Gerstner let out a laugh in response. "I think there's a lot of people who talk with a lot of breathless concern about our compute stuff or whatever that would be thrilled to buy shares,""
OpenAI is pursuing aggressive, high-cost AI infrastructure expansion aimed at achieving artificial general intelligence through enormous computational scale. Recent figures show revenue of roughly $13 billion while incurring massive losses, including a reported $11.5 billion loss in the last quarter. ChatGPT drives most revenue but converts only about five percent of its 800 million active users into paid subscribers. Executives responded defensively when questioned about $1.4 trillion in spend commitments versus current revenue and losses. Public and investor concerns about overcommitment, an AI spending bubble, and the sustainability of growth amid stalled subscription uptake are growing.
Read at Futurism
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