OpenAI, the developer of the artificial intelligence ChatGPT, is facing increasing financial challenges, with reports suggesting that the company’s losses may double in the coming years. According to the tech site “The Information”, these projections are based on recent financial documents from the company.
OpenAI currently operates as a non-profit company, meaning it heavily relies on investments and other funding sources to ensure the continuity of its operations, given that losses exceed revenue. In this context, the company is expected to generate revenues of up to $3.7 billion this year, while expected losses reach $5 billion, indicating that revenues will not be sufficient to cover the increasing expenses.
Recently, OpenAI raised over $6 billion in funding from investors, with the company’s value estimated at around $150 billion in that round. However, financial challenges continue, as estimates suggest that the company’s losses may exceed $11 billion next year, and could reach $14 billion by 2026, a significant increase due to rising costs of training artificial intelligence models.
The company is expected to remain unprofitable until 2029, aiming to achieve revenues of $100 billion by that year. This aligns with its anticipated plan to raise the subscription price of ChatGPT Plus to $44 per month over the next five years.
In light of these circumstances, OpenAI seeks to transition into a profitable company in the coming years, potentially attracting additional investments from investors. However, if the company succeeds in achieving this transition, the need to generate profits may require significantly increasing prices for all its services over the next few years, which could negatively impact the demand for its products.
