
OpenAI, the makers of the popular term paper cheating software ChatGPT, is burning through money almost as fast as the Kamala Harris campaign. Despite raking in $20 billion from eager investors, the company has failed to find a way to make itself profitable. Industry analysts are predicting that OpenAI’s days are now numbered unless the company can sucker more investors into dumping money into it.
The company launched the ChatGPT Pro service last year. For $2,400, talentless hacks with no writing skills and college students who want to cheat on term papers can have unlimited access to OpenAI o1, o1-mini, GPT-4o, and Advanced Voice. What OpenAI failed to predict was just how much people would be using the system.
In plain English, OpenAI has underpriced the service. Every time a person uses the software to write a piece of dead, soulless text for them, it churns through a tremendous amount of cost and energy for OpenAI.
Sean Johnstone with Goldman Sachs noted, “While this problem demonstrates the product’s popularity, it’s not clear how OpenAI is meant to turn a profit, much less operate its costly business sustainably.”
OpenAI made $3.7 billion from selling subscriptions last year but reported $5 billion in losses. Only a member of the Harris 2024 team could look at numbers like that and think it’s a sustainable business model.
Not to mention the fact that the class action lawsuits against the fledgling AI industry haven’t even started yet. Government AI data centers are causing massive power fluctuations in Virginia that are destroying people’s refrigerators and televisions. Once the lawsuits get underway, the future is going to look very grim for anyone who invested heavily in this technology.