OpenAI, the world’s most advanced artificial intelligence research lab, has just dropped a big revealing bomb. They won’t bring in a single dollar of new revenue before 2030. As you can imagine, this audacious claim has raised eyebrows among analysts. Analysts from HSBC particularly doubt the viability of this timeline given the current economic conditions and the massive financial needs for AI advancements.
As it stands now, OpenAI will require another $207 billion in investment just to keep the lights on and fund their research. The group’s ambitious long-term vision seems to depend almost entirely on the group winning big investments in the upcoming years. This large of a sum, with no upfront return for such potential investors has raised concerns about the willingness of them to commit.
Tim Cook, the CEO of Apple, has shown himself to be a strong proponent for incorporating AI across Apple’s products. He’s being watched closely as the company develops new ways to make money. Last year, Apple announced a staggering $143.8 billion in revenue. As analysts such as Erik Woodring have pointed out, inordinate challenges stand in the way of companies’ efforts to monetize AI projects.
“When I think about your AI initiatives, you know, it’s clear there are added costs associated with that… Many of your competitors have already integrated AI into their devices, and it’s just not clear yet what incremental monetization they’re seeing because of AI,” – Erik Woodring.
Much to the contrary of OpenAI’s endgame, Cook was quick to talk up how Apple intends to integrate AI at its core — within its operating system. He stated,
“Well, let me just say that we’re bringing intelligence to more of what people love, and we’re integrating it across the operating system in a personal and private way, and I think that by doing so, it creates great value, and that opens up a range of opportunities across our products and services,” – Tim Cook.
Amanda Silberling is a senior writer at TechCrunch. She’s an expert on technology and culture, and she has provided critical insight on what these developments mean. Silberling received a B.A. in English from the University of Pennsylvania. He is a former Princeton in Asia Fellow in Laos. Her recommendations shed light on how companies such as OpenAI and Apple have furthered the integration of AI. The road to profitability is fraught with unknowns.
As both organizations dot their i’s and cross their t’s on how best to develop and ultimately monetize AI, the entire industry will be watching closely. The next few years will be make-or-break for OpenAI. The organization must raise the billions in funding, develop realistic revenue streams, and much more under the cloud of widespread doubt from analysts and potential investors.
