{"id":4369,"date":"2025-08-08T18:05:36","date_gmt":"2025-08-08T18:05:36","guid":{"rendered":"https:\/\/musictechohio.online\/site\/ai-industry-nervous-money\/"},"modified":"2025-08-08T18:05:36","modified_gmt":"2025-08-08T18:05:36","slug":"ai-industry-nervous-money","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/ai-industry-nervous-money\/","title":{"rendered":"AI Industry Nervous About Small Detail: They’re Not Making Any Real Money"},"content":{"rendered":"
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\"The<\/div>\n

Like it or not, it’s safe to assume AI will be a\u00a0conversation that defines the rest of the 2020s.<\/p>\n

The recent launch of OpenAI’s latest model, GPT-5, comes as ChatGPT ascends\u00a0<\/strong>to the fifth most-visited website<\/a> in the world, ahead of Wikipedia, Reddit, TikTok and Amazon. In just three short years, the software has upended education<\/a>, scrambled the tech labor sector<\/a>, and ushered in something of a pandemic of chatbot-related mental health problems<\/a>.<\/p>\n

But for all those technocratic bona fides<\/a>, the software that’s said to be kicking off the next industrial revolution has one major hurdle to clear: it has yet to make any real money.<\/p>\n

Despite some terrific promises about GPT-5’s capabilities \u2014 OpenAI CEO Sam Altman went as far as to compare the chatbot update to the Manhattan Project<\/a> last month \u2014 the model’s actual improvements are\u00a0seriously underwhelming<\/a>, putting a damper on our timeline to reach the AI singularity.<\/p>\n

While that doesn’t really change much for the average Joe, it does tighten the immense financial pressure facing OpenAI and its peers.<\/p>\n

Thanks to the ridiculous cost of running millions of energy-intensive<\/a> AI queries every day, the company is struggling to make a dent in its expenditures, as the vast majority of users remain content to use its free model. Out of 700 million weekly users, OpenAI says only 5 million<\/a> of them actively pay for their services.<\/p>\n

Put into monetary terms, in 2024, OpenAI was burning through $2.50 for every dollar<\/a> it brought in. Given that most successful startups take anywhere from 3-5 years to turn a profit<\/a>, that might not necessarily sound like a death knell. After all, they’re going to keep growing, right?<\/p>\n

However, current analysis<\/a> suggests that OpenAI \u2014 now six years into its growth strategy<\/a> \u2014 won’t reach a positive cash flow until 2029 at the earliest, and that’s if everything goes according to plan.<\/p>\n

That might be well and good in China, where low-cost AI architects like DeepSeek<\/a> are free to prioritize long-term research and development without pressure from third-party investors<\/a>. But in the US, where a few massive tech monopolies rule the roost, time is money \u2014 and firms like OpenAI are spending their investors’ cash like water going through a data center<\/a>.<\/p>\n

As\u00a0Reuters\u00a0<\/em>pointed<\/a> out in a recent analysis, Alphabet, Meta, Amazon and Microsoft \u2014 the latter of which is backing OpenAI \u2014 expect to spend upwards of $400 billion<\/a> to keep the AI dream alive in 2025 alone. The promise of that kind of spending has sent tech shares through the roof, with Microsoft becoming the world’s second $4 trillion company<\/a> this summer.<\/p>\n

Those numbers might sound high now, but what they really signal is investor confidence that companies like OpenAI \u2014 currently valued at a hefty $300 billion<\/a> \u2014 will continue to grow in a way never before seen<\/a> in history.<\/p>\n

Whether they’ll ultimately succeed depends on the tech itself. If the lackluster release<\/a> of GPT-5\u00a0<\/strong>is any indication, the tech industry has a long climb ahead of it \u2014 and it’s all loose rock from here.<\/p>\n

More on AI: <\/strong>If the AI Bubble Pops, It Could Now Take the Entire Economy With It<\/em><\/a><\/p>\n

The post AI Industry Nervous About Small Detail: They’re Not Making Any Real Money<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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Like it or not, it’s safe to assume AI will be a\u00a0conversation that defines the rest of the 2020s. The recent launch of OpenAI’s latest model, GPT-5, comes as ChatGPT…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1539,177,196,179],"tags":[],"class_list":["post-4369","post","type-post","status-publish","format-standard","hentry","category-ai-hype","category-artificial-intelligence","category-chatgpt","category-openai"],"_links":{"self":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/4369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/comments?post=4369"}],"version-history":[{"count":0,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/4369\/revisions"}],"wp:attachment":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/media?parent=4369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/categories?post=4369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/tags?post=4369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}