OpenAI is planning to spend $1 trillion over the course of 10 years to solidify its massive computer systems and infrastructure. Yes, a trillion! According to TechCrunch, the company is making around $13 billion in annual revenue (that’s a big number) and would need just about $1,000 billion to go. So, several questions loom: how is OpenAI going to make that money? What’s it doing currently to support this $1 trillion investment push? Is it a realistic goal after all? Is OpenAI in big deals with other tech giants for the same? For all that, learn more.
Openai’s Revenue in a Nutshell
OpenAI apparently is making about $13 billion a year in revenue. Most of its revenue, approximately 70%, comes from its $20 monthly subscription for ChatGPT Plus users. Interestingly, that’s just 5% of its total 800 million users. So, if they push harder and turn more free users into paid, the target is still reachable. If that is the case, then it could possibly go against its non-profit mission (to make advanced AI benefits reach all of humanity).
OpenAI’s Big Deals
The company is in deals with tech giants like Oracle, Nvidia, AMD, and Broadcom to get access to 26 gigawatts of computing power. Do you know that these deals altogether have enough energy to power up several large cities? However, this computing power is necessary to run and train their powerful AI models, and it comes at a significant cost. In short, the company is spending more.
The Plan (Next 5 Years)
To reach the $1 trillion goal, OpenAI drew a five-year plan and here’s what it sounds like:
- Government contracts — The company plans to sell its AI services to governments and establish strategic connections.
- Shopping tools — OpenAI will soon have AI-powered assistants for online shopping.
- Video services — To build more tools to create or edit videos.
- Consumer hardware — The company is in partnership with Jony Ive to develop new AI gadgets.
- Becoming a computing supplier — OpenAI’s big project called Stargate, a data centre will rent out computing power to other tech companies.
- Debt partnerships — The company is actively trying to raise more funds from investors and is also exploring debt partnerships.
Why Does This $1 Trillion Matter to OpenAI?
Several companies are heavily dependent on OpenAI for AI-related work. The company is planning to level up to support its big projects because if OpenAI fails, it could shake up the U.S. economy. OpenAI is under pressure to handle its finances well and deliver its promises.
Yash Gupta
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