Sam Altman Admits AI Isn’t Profitable and an AI Bubble Exists

Comments by Brian Shilhavy

Excerpts from The Information (https://www.theinformation.com/articles/bytedances-upcoming-world-model-altmans-thoughts-gpt-5-fiasco-profitability-going-public?rc=ie9o9i):

Altman ruled out building anime-style sexual chatbots the way xAI has. He said he believes the easiest way for lagging companies to gain AI adoption is through engagement-bait bots, though OpenAI won’t pursue them.

On the AI market, he agreed there is a bubble, with investors overhyping valuations, and predicted both major successes and significant failures.

Financially, he said OpenAI is “close” to profitable on serving its AI in apps like ChatGPT, excluding the high training costs of developing the AI, and COO Brad Lightcap said the company is nearly profitable on its sales of models to developers.

Fair enough, but OpenAI has recently projected it will burn $8 billion this year—about $1 billion more cash burn than it had projected earlier in the year.

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