OpenAI Faces Financial Challenges Amidst Calls for Government Support
Originally Published 2 months ago — by Forbes
OpenAI's CEO Sam Altman has committed to massive compute spending through billion-dollar deals with tech giants, risking financial instability. Despite the company's projected revenue of $20 billion in 2023, the commitments could require revenue growth to $577 billion by 2029, which is highly unlikely. Altman, who claims he has no financial stake in the company, is unlikely to face personal consequences if OpenAI cannot meet its obligations, as most contracts are renegotiable or contingent on usage. The company's future depends on whether it can generate enough revenue or renegotiate its contracts, with potential risks including bankruptcy or acquisition.