OpenAI could lose $5B this year and run out of cash in 12 months: report

The ChatGPT maker reportedly will spend some $7 billion on AI testing this year.

OpenAI is running a costly business that could lose as much as $5 billion in 2024, putting the ChatGPT maker at risk of running out of cash within 12 months, according to an analysis by The Information.

According to the report, which cites previously undisclosed financial data and people familiar with the business, OpenAI is on track to spend some $7 billion on artificial intelligence (AI) training alone, and another $1.5 billion on staffing. That far exceeds the reported expenses of rivals, such as Amazon-backed Anthropic, which expects a 2024 burn rate of $2.7 billion.

OpenAI’s lofty expenses could force the company to close on yet another financing round within 12 months to bolster its balance sheet, the report claims. OpenAI has already completed 7 funding rounds, raising in excess of $11 billion, according to data from Tracxn — most recently a private round with ARK Investment Management in April for an undisclosed sum.

The ChatGPT maker reportedly will spend some $7 billion on AI testing this year.
OpenAI is running a costly business that could lose as much as $5 billion in 2024, putting the ChatGPT maker at risk of running out of cash within 12 months, according to an analysis by The Information. According to the report, which cites previously undisclosed financial data and people familiar with the business, OpenAI is on track to spend some $7 billion on artificial intelligence (AI) training alone, and another $1.5 billion on staffing. That far exceeds the reported expenses of rivals, such as Amazon-backed Anthropic, which expects a 2024 burn rate of $2.7 billion.OpenAI’s lofty expenses could force the company to close on yet another financing round within 12 months to bolster its balance sheet, the report claims. OpenAI has already completed 7 funding rounds, raising in excess of $11 billion, according to data from Tracxn — most recently a private round with ARK Investment Management in April for an undisclosed sum.Read more