Despite increasing revenue, OpenAI is expected to continue operating at a loss until 2029, as the cost of scaling advanced AI models remains steep.
OpenAI, an artificial intelligence developer of some of the most powerful AI models, is struggling to generate profits.
According to an Oct. 9 report from The Information, the company’s projections reveal that it will not turn a profit until 2029 after hitting $100 billion in revenue.
OpenAI is projected to incur a loss of about $5 billion in 2024, with losses potentially reaching as high as $14 billion by 2026. These figures highlight the steep costs of scaling advanced artificial intelligence models amid increasing global demand for generative AI technologies.
