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Openai Not Expecting Positive Cash-Flow Until 2029 – Bloomberg

Openai does not expect a positive cash flow in 2029 - Bloomberg

OPENAI does not expect to make positive cash flows before 2029, according to a report by Bloomberg News citing a familiar source with the financial prospects of the company.

Although the power of artificial intelligence has projected growth in explosive income in the coming years, it continues to combat overwhelming costs linked to computer infrastructure, research on AI and talent required to maintain its leadership in industry.

The six -year profitability calendar has raised concerns, in particular given the massive investments that the company has received donors, including Microsoft, which paid more than $ 13 billion to Openai. For investors who have injected billions into the company, 2029 seems to be a long wait for yields, fueling the examination compared to the ability of Openai to generate lasting profits.

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Microsoft’s financing was essential in the expansion of Openai, giving it access to the Azure Cloud infrastructure of the technology giant and GPU resources. The investment has also enabled Openai to scale its AI models and integrate its technology into Microsoft products such as Copilot and Azure Openai Service.

In addition to Microsoft, Openai has aroused the interest of venture capital and large technological companies wishing to capitalize on the AI ​​revolution. At the end of 2023, Openai would have been under discussion to sell employee shares to an evaluation of 80 to 90 billion dollars, making it one of the most precious startups in the world.

OPENAI would be close to finalizing a $ 40 billion financing round led by SoftBank Group Corp. – With investors such as Magnetar Capital, Coatue Management, Founders Fund and Altimeter Capital Management in talks to participate. The new Mega Round will bring the company to a massive evaluation of $ 300 billion.

The amazing evaluation has increased expectations that Openai would quickly increase to cash generating power, but its own projections suggest that financial stability is still in years.

However, Openai remains optimistic about its long -term growth. The company expects its annual income exceeding $ 125 billion by 2029, a strong increase compared to current levels. Bloomberg’s report indicates that Optai plans $ 12.7 billion in revenues for 2025, a spectacular increase compared to the 3.7 billion dollars estimated for 2024.

Although these figures indicate a high demand for tools fueled by OPENAI, they do not immediately compensate for the enormous business management costs. The company continues to burn through capital due to the increase in the cost of AI training, which requires advanced GPUs, data centers and an elite workforce for IA researchers and engineers. The cost of high performance ia chips, in particular those of Nvidia, has skyrocketed because demand has exceeded the supply, forcing Openai to spend billions in computer science only.

The push to justify investments in AI

To respond to investor concerns, Openai has increased efforts to diversify its sources of income. Since the launch of Chatgpt in 2022, the company has introduced several services based on subscription, including Chatgpt Plus for individual users and business AI solutions for companies. These offers have gained ground, with Openai exceeding 2 million paid commercial users by February 2024, doubling the number of subcontractors in less than six months.

In addition, Openai monetized its AI Applications programming interfaces (API), allowing companies to integrate its models into their platforms. Partnerships with large companies and cloud services have further strengthened its income potential, but questions remain whether these initiatives can generate enough income to match the business assessment and investment levels.

The next few years will be essential for Openai because she seeks to prove that her AI -focused business can become an autonomous company rather than an expensive research project depending on external funding. The company faces fierce competition of rivals such as Google Deepmind, Anthropic and Meta, which all develop their own generative AI models.

There is also the imminent challenge for AI regulations, while governments around the world operate to introduce laws governing the deployment of AI and ethical concerns concerning the content generated by AI. All regulatory obstacles could slow down the momentum of Openai, further complicating its path to profitability.

Currently, Openai seems to bet that the progress of the AI ​​continues and the growing adoption will ultimately justify the billions that have been paid in its development. But for investors, in particular Microsoft, the question remains: how long are they ready to wait for Openai to transform its domination into AI into a profitable company?

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