AI

OpenAI has five years to turn $13 billion into $1 trillion

OpenAI is currently printing money. The company generates about $13 billion in annual revenue, 70% of which comes from regular people paying $20 a month to chat with an AI. according to the Financial Times. That’s pretty wild when you consider that ChatGPT has 800 million regular users, but only 5% are actual paying subscribers.

While OpenAI is raking in billions, it has also committed to spending more than $1 trillion (yes, trillion) over the next decade. The company recently inked deals for more than 26 gigawatts of computing capacity from Oracle, Nvidia, AMD and Broadcom – infrastructure that will cost far more than what comes in.

To bridge this gap, OpenAI is getting creative, the FT reports. A five-year plan includes exploring government contracts, retail tools, video services, consumer hardware and even becoming a computer supplier itself through the Stargate data center project.

A growing number of companies need math to work out. Some of America’s most valuable companies now rely on OpenAI to execute large contracts, the FT notes; if OpenAI falters (no pressure!), it could potentially destabilize the broader US market.

Source link

See also  OpenAI-backed biotech firm Chai Discovery raises $130M Series B at $1.3B valuation
Back to top button