OpenAI’s Future: Can It Overcome Financial Hurdles?

Technology commentator Edward Zitron said that OpenAI, the creator of ChatGPT, currently has no viable business model to support the company’s outlook and spends too much money. However, there are quite a few industry executives who do not concur.

I for one now find it impossible to imagine OpenAI in its present configuration Zitron proclaimed in the latest Where’s Your Ed At? newsletter. This comes after earlier this year, it was reported that OpenAI may report a net operating loss of up to $5 billion in 2024; which means the company may run out of cash in the next 12 months.

Zitron said for OpenAI to ‘survive’ beyond 2026 it would require more equity funding than any start up in history and do so year in and year out.

Furthermore, he said that OpenAI needs to solve a grand challenge to cut the cost of developing GPT by at least an order of magnitude.

“Have a technological shift that will ensure the costs of construction and running of GPT or a model that will replace it are easily reduced by a factor of thousands of percentages,” he added.

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