Categories: Technology

OpenAI does not expect to be cash-flow positive until 2029, Bloomberg News reports

OpenAI is not expecting its cash flow to turn positive until 2029, Bloomberg News reported on Wednesday, citing a person familiar with the matter.

The San Francisco-based artificial intelligence bellwether is grappling with significant costs from chips, data centers and talent needed to develop cutting-edge AI systems, according to the report.

By 2029, OpenAI expects its revenue will surpass $125 billion. Fueled by the strength of its paid AI software, OpenAI forecast to more than triple its revenue to $12.7 billion in 2025, the report said.

In September last year, Reuters reported that OpenAI was anticipating its revenue would surpass $11.6 billion in 2025, citing sources who were privy to the matter, adding that its revenue in 2024 would touch $3.7 billion, a figure corroborated by the Bloomberg report.

In more than two years since OpenAI rolled out its ChatGPT chatbot, it has introduced a bevvy of subscription offerings for consumers and businesses. In February, its paying business users crossed 2 million, more than double the number from its last update in September.

Source: reuters

GECMagz

Recent Posts

The EU’s path to service growth and clean tech

The US is taking actions to reshore manufacturing while largely abandoning decarbonisation. This column argues…

2 days ago

The distributional consequences of cost-sharing in universal healthcare

Across Europe, the promise of universal healthcare is under renewed scrutiny. Even in systems with…

2 days ago

EU capital markets reform should focus on innovation investment

While the European Commission launches new legislative proposals to reform EU capital markets (European Commission…

4 days ago

Trade risk and optimal trade policy: Lessons from food security

Global trade has become risky. Geopolitical conflict, trade policy uncertainty, and the risk of shipping…

4 days ago

Banking on inattention: When deposits hedge or amplify interest rate risk

Deposits are US banks’ primary funding source; they are typically cheap, abundant, and slow to…

6 days ago

How AI is affecting productivity and jobs in Europe

Artificial intelligence promises to reshape economies worldwide, but firm-level evidence on its effects in Europe…

6 days ago