OpenAI is intensifying its investment in AI infrastructure, aiming for artificial general intelligence through substantial computational resources. Despite facing a staggering $11.5 billion loss last quarter, predicated by Microsoft earnings, CEO Sam Altman remains optimistic. OpenAI’s flagship product, ChatGPT, has seen stagnant subscriber growth, with only about 5% of its 800 million users converting to paid subscriptions. This dismal conversion rate raises alarm over the sustainability of their business model, especially amidst ongoing concerns about an AI bubble. In a recent interview, Altman bristled at queries about the company’s financial viability, claiming revenue is “growing steeply.” OpenAI, currently the most valuable private entity, is reportedly laying the groundwork for a potential initial public offering (IPO) that could reach valuation of $1 trillion. As investor speculation mounts, Altman suggests excitement around AI could lead to significant financial risks.
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