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7mo ago

OpenAI Faces $44 Billion Losses Before Projected 2029 Profit

The AI company seeks to exclude key training costs from earnings, raising comparisons to past tech controversies.

Sam Altman, CEO of OpenAI, speaks onstage at The Plaza Hotel on Dec. 12, 2023, in New York. 
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Overview

  • OpenAI plans to exclude AI training costs from its earnings reports, a move criticized by experts as misleading.
  • The company anticipates losses totaling $44 billion from 2023 to 2028, with profitability expected by 2029.
  • OpenAI recently secured $6.6 billion in funding, valuing the company at $157 billion.
  • Microsoft is set to receive a 20% share of OpenAI's revenue, reflecting its substantial investment in the company.
  • The high costs of AI model training, projected to reach $9.5 billion annually by 2026, highlight the financial challenges ahead.