OpenAI's GPT-5 has launched amidst a surge in user engagement, becoming one of the most-visited websites globally. Despite its rapid rise, the model faces a critical challenge in generating revenue, with the majority of its 700 million weekly users opting for the free version. OpenAI is currently incurring high costs, burning $2.50 for every dollar earned. Analysts predict that the company may not achieve positive cash flow until 2029, putting additional pressure on its long-term growth and the AI development landscape.
Despite some terrific promises about GPT-5's capabilities - OpenAI CEO Sam Altman went as far as to compare the chatbot update to the Manhattan Project last month - the model's actual improvements are seriously underwhelming, putting a damper on our timeline to reach the AI singularity.
Thanks to the ridiculous cost of running millions of energy-intensive AI queries every day, the company is struggling to make a dent in its expenditures, as the vast majority of users remain content to use its free model.
Put into monetary terms, in 2024, OpenAI was burning through $2.50 for every dollar it brought in. Given that most successful startups take anywhere from 3-5 years to turn a profit, that might not necessarily sound like a death knell.
Current analysis suggests that OpenAI - now six years into its growth strategy - won't reach a positive cash flow until 2029 at the earliest, and that's if everything goes according to plan.
Collection
[
|
...
]