"Despite Altman calling ads a " last resort for us as a business model" in 2024, the company announced earlier this month that ChatGPT will soon start spamming users with them. Its cash burn rate is immense. The company is planning to spend well over $1 trillion in the coming years on data center infrastructure, despite revenue lagging far behind. Experts have warned that the company could run out of cash within the next 18 months."
""What I think we shouldn't do, and what I hope other companies won't do either, is hire super aggressively, then realize all of a sudden AI can do a lot of stuff, and you need fewer people, and have to have some sort of very uncomfortable conversation," Altman told attendees. "So I think the right approach for us will be to hire more slowly but keep hiring.""
An internal memo declared a "code red" urging intensified work on ChatGPT as financial pressure and competitor advances mount. The company is pursuing more revenue and will add ads to ChatGPT despite prior resistance to advertising as a business model. Cash burn is described as immense, with plans to spend over $1 trillion on data center infrastructure while revenue trails. Experts warn of possible cash depletion within 18 months. Hiring will "dramatically slow down" to avoid overstaffing as AI capabilities evolve, with the company favoring slower but continued hiring amid investor scrutiny.
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