OpenAI Is Maneuvering for a Government Bailout
21 hours ago
- #AI
- #Subsidies
- #OpenAI
- OpenAI is losing money at an unprecedented rate, with losses totaling $30.5 billion from 2024 to mid-2025.
- To sustain its business model, OpenAI is considering government subsidies, loan guarantees, and financial innovations like revenue-sharing deals.
- AI has potential in certain applications but is currently associated with negative outcomes like spam, scams, and legal risks.
- Venture capitalists are investing heavily in AI, hoping for breakthroughs like 'robot slaves,' though this is unlikely in the near future.
- AI differs from traditional software models with high capital costs, marginal costs, and vulnerability to competition.
- OpenAI may pivot to government contracts, following companies like Palantir and Boeing, to secure funding.
- The feasibility of reaching $2 trillion in AI revenue by 2030 is highly questionable, raising concerns about future bailout requests.