OpenAI’s current business model is ‘untenable’ — Report
Technology commentator Edward Zitron claims OpenAI will need to make several changes to “survive” beyond two years, but some industry executives disagree.
ChatGPT maker OpenAI’s current business model is unsustainable because of its lack of clear path to profitability and its excessively spending, claims technology commentator Edward Zitron. However, several industry executives disagree.
“I ultimately believe that OpenAI in its current form is untenable,” Zitron declared in his most recent “Where’s Your Ed At?” newsletter. It follows recent reports that OpenAI could lose as much as $5 billion in 2024, putting the company at risk of running out of cash within 12 months.
Zitron asserted that for OpenAI to “survive” beyond 2026, it will need to secure more funding than any startup in the history has ever raised and keep raising it continuously.
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Author: Ciaran Lyons
