OpenAI, the leading AI company, is struggling to turn a profit despite its popular ChatGPT platform. CEO Sam Altman revealed that the company is currently losing money on ChatGPT Pro subscriptions, attributing the issue to the exorbitant costs of running AI infrastructure, including electricity and data center maintenance. OpenAI faces a significant financial challenge, projected to lose $5 billion in 2024, prompting the company to seek additional capital.
While trying its darndest to become profitable, OpenAI is still falling comically short — which, since it's the 800-pound gorilla in the nascent AI industry, should probably give pause to its rivals both large and small.
In other words, there's an inconvenient reality for anyone in the AI space trying to turn a profit, as, OpenAI was on track to lose a whopping $5 billion in 2024, which put the company firmly in the red compared to its $3.7 billion in revenue."We once again need to raise more capital than we'd imagined," the governing body wrote. "Investors want to back us but, at this scale of capital, need conventional equity and less structural bespokeness.
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