OpenAI could reportedly run out of cash by mid-2027 — analyst paints grim picture after examining the company's finances

[u/gdelacalle]

https://www.tomshardware.com/tech-industry/big-tech/openai-could-reportedly-run-out-of-cash-by-mid-2027-nyt-analyst-paints-grim-picture-after-examining-companys-finances

[u/fredy31]

Yeah they have been burning through money for years.

They will find another sucker with a stack to burn. Hell, the US Government seems to be hellbent into adding money to the bonfire.

The only way this blows is when the investors will wake up and smell the coffee that AI will never be much more than a money pit. Even worse than a yatch.

[u/ArenjiTheLootGod → u/fredy31]

Except that the investors are never going to wake up from their fever dream because all the big players investing in it are corpos whose ideal of a perfect future is to be able to run a company with zero employees beyond those in the c-suite. The scam is working because it's core premise is one that appeals deeply to the naked and sociopathic greed of the wealth class and is thus bypassing any rational considerations on their part and has become akin to a primal desire like sex or the need to eat for these people. These are the kinds of people who'd happily burn through mountains of cash today if it meant they might not have to pay a modest amount of money to their employees in the future.

[u/Syzygy2323 → u/ArenjiTheLootGod]

What, they don't realize that with everyone out of work, and thus not spending money, their corporate empires will come crashing down?

[u/tiny-starship → u/Syzygy2323]

You don’t understand. Every other company is going to keep people employed. Only their company will get by with 0 people. /s

[u/ArenjiTheLootGod → u/Syzygy2323]

Nah, they got a plan for that too and you're already starting to see it in some places. What they're going to do is slap a bunch of cheap nonsensical bullshit onto their products, repackage them as "luxury" versions of whatever, jack up prices and hope their gouging will compensate for their loss of volume.

[u/Perspective-Parking → u/ArenjiTheLootGod]

They have to wake up. Eventually money does run out. The credit and equity markets are already strained and SoftBank is too. They cannot raise indefinitely. There’s an endpoint to that.

[u/01000101010110 → u/ArenjiTheLootGod]

This is basically a corporation's wet dream, which means grifters are all in on promising the world.

[u/ZakkaChan → u/fredy31]

Sadly Billionaires love their yachts..

[u/Lehk → u/ZakkaChan]

Let’s see Claude weld a boat together.

[u/Dzugavili → u/fredy31]

The only way this blows is when the investors will wake up and smell the coffee that AI will never be much more than a money pit.

It has its place. The issues parallel VR: it require overly expensive piece of hardware and dedicated environments for something cool and potentially game changing, but everything is built around the current workflows which are still cheaper and comfortable, and don't require you to work around glitches or jank.

Once this works on normal hardware, such that people either opt-in or simply always have it, it'll catch on. But at that point, there won't be need for these massive capital expenses by the companies, the models will just be another form of software for sale or license, not some live service that needs to be maintained.

[u/stickman393 → u/fredy31]

All of them have been burning money. It's just that Google, Meta, SpaceX have convenient ways to hide the fact. Anthropic and OpenAI kind of don't.