Researchers Warn OpenAI Could Run Out of Cash by Mid-2027
An analysis of OpenAI's finances suggests the company could exhaust its cash reserves by mid-2027, as spending is projected to outpace revenue significantly.
After analyzing OpenAI's financial situation, a researcher has warned that the company could run out of cash by mid-2027.
A third-party report from last year estimated OpenAI would spend $8 billion in 2025, with that figure projected to balloon to $40 billion by 2028.
Council on Foreign Relations economist Sebastian Mallaby said that even if OpenAI revisits its spending plans and pays with its highly valued shares, it still faces a massive financial gap to bridge.
Bain & Company previously reported there is a potential "black hole" in the tech sector that could consume at least $800 billion.
Researchers note that AI companies are spending money faster than they can generate revenue.
While OpenAI CEO Sam Altman managed to raise $40 billion in investment, the company still lacks a clear business model or a reliable path to profitability.
Ref: Fossbytes





