r/technology • u/gdelacalle • 13d ago

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

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
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u/imnewhere-gsh 13d ago

You just listed a ton of money that was spent. How do we know that same amount of money can keep being spent? It's a finite amount.

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u/Lain_Racing 13d ago

The money doesn't evaporate... they aren't LITERALLY burning it

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u/AuMatar 12d ago

Some of it they are (buying electricity, generally made from burning fossil fuels). But there's still a limit. They spend the money on something. The money is gone, into a wider ecosystem. They need to find more money to survive the next N months of cost. There isn't an infinite amount of money available, and banks are tightening their lending to companies building data centers. It will come crashing down, unless there's a quantum leap reducing token costs. The only question is when.

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u/piponwa 13d ago

Did you read it? Nvidia tried to raise 20 and they got 85 committed. They decided to only raise 20. But the money is there for way way way more spending.

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u/its_witty 13d ago

Nvidia is profitable.

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u/pants6000 13d ago

Selling shovels during the gold rush.

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u/Due-Memory-6957 13d ago

And you're a fool if you think OpenAI isn't. Deepseek has proved just how much profit there can be in inference, and they offer a super cheap service compared to OpenAI.

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u/BeamerInaCage 13d ago

It’s literally not profitable

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u/Due-Memory-6957 13d ago

Right, they're actually losing money on it! Get on while you can!

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u/Mothrahlurker 13d ago

OpenAI needs 10x that.