OpenAI, the creator of ChatGPT, faces significant financial challenges, with projections indicating it needs to raise $207 billion by 2030 to offset mounting losses. A report by HSBC reveals that OpenAI’s compute costs could reach $1.4 trillion annually by 2033, far exceeding its projected $20 billion revenue this year. As a result, OpenAI may push for an IPO to cover costs while exploring advertising revenue from user interactions. This desperation raises concerns about user privacy, particularly as they monetize sensitive data. Furthermore, ongoing copyright lawsuits threaten the foundation of the AI industry, with numerous companies, including OpenAI, facing litigation for using unlicensed training data. As OpenAI expands its service offerings, the risk of alienating users and damaging trust grows. Investors and governments should reevaluate their commitment to a business model that appears fundamentally unviable, as OpenAI’s financial practices could have far-reaching implications for the broader technology sector.
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