In a recent interview on the Big Technology Podcast, Sam Altman faced tough questions regarding OpenAI’s profitability. At the 36-minute mark, he acknowledged that soaring training costs are outpacing revenue growth, with projected losses of $120 billion by 2028. Altman stressed that OpenAI’s aggressive training investments are crucial for long-term revenue growth and hinted that profitability could come sooner if spending were curtailed. However, he maintained that the key to success lies in the ability to monetize computing power efficiently. As such, OpenAI’s strategy involves scaling up its consumer and enterprise services to create sustainable revenue streams. Altman emphasized that the limiting factor isn’t demand but computing capacity, and their goal is to find buyers for every unit of compute they produce. OpenAI’s profitability ultimately hinges on this strategic bet, balancing massive investments in training with anticipated returns from its expanding services.
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