Behind the Money

Is OpenAI’s business model sustainable?

Feb 28, 2024

Explore the sustainability of OpenAI’s business model, focusing on the costs of AI technology. Can the start-up achieve its ambitious goals? Discover their revenue strategies and the challenges of balancing profitability with AGI development. Learn about their financial viability and future prospects in the evolving market.

17:43

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Episode guests

Sam Altman

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Episode notes

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Quick takeaways

OpenAI's revenue growth is attributed to ChatGPT, but high operational costs pose challenges.

OpenAI's shift to a for-profit model aims to balance profitability with ambitious AI goals.

Deep dives

OpenAI's Rapid Growth and Revenue Milestone

OpenAI recently achieved a significant milestone by surpassing $2 billion in annualized revenue. This remarkable growth is attributed to their AI chat bot, Chat GPT, which has been pivotal in their success. The company aims to potentially double or exceed this revenue over the next year, positioning them among the top companies in Silicon Valley.

Introduction

3min

Evolution of OpenAI from Non-Profit Research Lab to For-Profit Model

3min

Exploring OpenAI's Revenue Generation and Cost Challenges

4min

Balancing Profitability vs. AGI Development at OpenAI

6min

Exploring OpenAI's Financial Viability and Future Prospects

3min

OpenAI is one of the fastest-growing companies ever, thanks to its artificial intelligence chatbot, ChatGPT. But costs to train and run the models that underpin that technology are steep. And chief executive Sam Altman has said he has even bigger aims. The FT’s Madhumita Murgia and George Hammond examine whether the start-up’s existing business model can achieve its long-term goals.

Plus, do you have a question about markets, finance or economics? Get in touch with Michela, and we may use it in an upcoming joint show with Unhedged.

Email Michela at michela.tindera@ft.com, or message her on X at @mtindera07.

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For further reading:

Can OpenAI create superintelligence before it runs out of cash?

OpenAI on track to hit $2bn revenue milestone as growth rockets

OpenAI’s Sam Altman in talks with Middle East backers over chip venture

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On X, follow Madhumita Murgia (@madhumita29), George Hammond (@GeorgeNHammond) and Michela Tindera (@mtindera07), or follow Michela on LinkedIn for updates about the show and more.

Read a transcript of this episode on FT.com

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Behind the Money

Is OpenAI’s business model sustainable?

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

OpenAI's Rapid Growth and Revenue Milestone

Transition to For-Profit Model and Revenue Streams

Financial Challenges and Strategic Decisions Ahead

Remember Everything You Learn from Podcasts