2024

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<p>OpenAI is a leading company in the artificial intelligence market. It is currently facing major profitability challenges, despite experiencing explosive growth. With projected losses amounting to $14 billion by 2026, the AI expert company does not foresee any profits before 2029.</p>
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     <p lang="en" dir="ltr">Exclusive: OpenAI’s financial projections for investors suggest it won’t reach a profit until 2029 and also indicate its losses could triple by 2026.<a href="https://t.co/8qNVjur3TV" rel="noopener noreferrer nofollow">https://t.co/8qNVjur3TV</a><br><br>From <a href="https://twitter.com/coryweinberg?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@coryweinberg</a></p>— The Information (@theinformation) <a href="https://twitter.com/theinformation/status/1844125397228605686?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">October 9, 2024</a>
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  OpenAI and AI: $157 billion valuation, but still a deficit future
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<h2 id="h-le-cout-colossal-de-l-innovation-en-ia-un-element-cle">The Colossal Cost of AI Innovation: A Key Element</h2>
<p>Thanks to its <a href="https://www.cointribune.com/en/ai-unveils-its-ace-chatgpt-with-memory-a-game-changing-feature/" target="_blank" rel="noopener noreferrer nofollow">GPT-3 and GPT-4 models</a>, OpenAI has significantly <strong>increased its revenues</strong>. Unfortunately, these do not offset the enormous costs required to scale generative AI technologies.</p>
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<p>In 2024, the company is expected to register <strong>a loss of $5 billion</strong> (despite a projected revenue of $3.7 billion). This <a href="https://www.theinformation.com/articles/openai-projections-imply-losses-tripling-to-14-billion-in-2026" target="_blank" rel="noopener noreferrer nofollow">situation</a> results from massive expenditures in:</p>
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 <li>cloud computing,</li>
 <li>AI infrastructure,</li>
 <li>AI research.</li>
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<p>Certainly, the partnership with Microsoft Azure helps OpenAI support its operations. Nevertheless, it also contributes to increased costs. The infrastructure necessary to maintain and evolve advanced AI models remains one of the <strong>biggest financial challenges for OpenAI</strong>.</p>
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<h2 id="h-malgre-ces-pertes-openai-continue-d-attirer-des-investissements-massifs-en-ia">Despite these losses, OpenAI continues to attract massive AI investments</h2>
<p>In October, OpenAI raised $6.6 billion. This brings its <strong>valuation to $157 billion</strong>. These funds are essential to remain competitive against <a href="https://www.cointribune.com/en/nvidia-microsoft-and-anthropic-3-ai-stocks-that-will-dominate-finance-in-2024/" target="_blank" rel="noopener noreferrer nofollow">other giants</a> in AI such as Google DeepMind and Anthropic.</p>
<p>These competitors add extra pressure, forcing OpenAI to invest more in technological innovation and talent acquisition. The company must also improve its large language models and computing capacity to <strong>meet the growing demand for generative AI</strong>.</p>
<p><a href="https://www.cointribune.com/en/ai-is-openai-abandoning-its-founding-values-making-strategic-errors-or-pursuing-bold-choices/" target="_blank" rel="noopener noreferrer nofollow">OpenAI</a> thus finds itself at a crucial turning point in its development. Nevertheless, it remains a key player in the artificial intelligence revolution.</p>

AI: Why OpenAI Will Remain In Deficit Despite $300M Monthly Revenue

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