OpenAI is grappling with financial challenges despite securing $288 billion in cloud contracts with Microsoft and Amazon. According to Cointribune, only a third of these contracts will be utilized by 2030, leaving OpenAI with a need to raise an additional $207 billion to stave off financial difficulties. The company aims to expand its AI subscriber base from 35 million to 220 million by 2030, but is hindered by declining market share and substantial operational costs.
HSBC projects that OpenAI's expenses could escalate to $792 billion by 2030 and potentially reach $1.4 trillion by 2033 if current trends persist. Although OpenAI anticipates generating free cash flow and proceeds from asset sales, it is currently viewed more as a 'cash sink' than a profitable enterprise.
OpenAI Faces Financial Strain Despite Massive Cloud Contracts
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