OpenAI is projected to become profitable in 2029, with revenue expected to reach $100 billion; however, losses are forecasted to total $44 billion between 2023 and 2028.
Developing advanced AI takes a lot of time and money, so it's expected that OpenAI would face high costs before it starts making a profit, according to Kate Leaman, chief market analyst at AvaTrade.
The partnership with Microsoft may affect OpenAI's margins as they might earn less from each revenue dollar, but it could help the business grow substantially.
Microsoft is anticipated to receive a 20% cut of OpenAI's revenues, as its ongoing investment and cloud services support the company's financial structure.
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