{"id":657352,"date":"2024-12-18T00:00:00","date_gmt":"2024-12-18T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/12\/18\/openai-is-on-a-spending-spree\/"},"modified":"2024-12-18T00:00:00","modified_gmt":"2024-12-18T00:00:00","slug":"openai-is-on-a-spending-spree","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/12\/18\/openai-is-on-a-spending-spree\/","title":{"rendered":"OpenAI is on a spending spree"},"content":{"rendered":"

OpenAI is burning through bills like there\u2019s no tomorrow. <\/strong>After raising<\/a> USD 10 bn last year, the company spent most of it in just 18 months. Now, it\u2019s back with another USD 6.6 bn in funding<\/a> and USD 4 bn in loans<\/a> \u2014 but here\u2019s the kicker, it\u2019ll need more money in less than two years, the New York Times<\/a> reports. By 2029, OpenAI\u2019s expenses are expected to climb<\/a> from the current USD 5.4 bn to USD 37.5 bn.<\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to external sources.)<\/p>\n

The reason for this financial frenzy?<\/strong> Training AI is expensive. AI development is all about feeding enormous amounts of data into massive systems, and OpenAI\u2019s ChatGPT relies on data centers packed with thousands of GPUs<\/a> \u2014 high powered chips that cost USD 30k each \u2014 which run months-long calculations that rack up bills in the hundreds of mns of USD.<\/p>\n

But it's not just chips. <\/strong>The electricity to power them, the data center space to house them, and the amount of hardware needed are all in short supply \u2014 and the prices are inflating. Companies like OpenAI, Google, and Microsoft are overspending to manufacture more GPUs<\/a>, build new facilities, and secure enough power to keep their AI dreams alive. But these tools, aka our friend ChatGPT, are being offered to users for free, and sometimes with a low-cost subscription fee that barely scratches the surface of their costs.<\/p>\n

The reason behind the madness: <\/strong>OpenAI is aiming to create artificial general intelligence<\/a> (AGI), a machine that can think and learn like a human. The tech needed for this, like the new OpenAI o1 system<\/a>, is bigger and more powerful than anything before it. Earlier this month, OpenAI disclosed their intention to ditch a clause<\/a> that stops AGI being used for commercial gain, meaning that they may be looking to un-dent their financial reserves after the technology debuts.<\/p>\n","protected":false},"excerpt":{"rendered":"

After raising USD 10 bn last year, the company spent most of it in just 18 months<\/p>\n","protected":false},"author":1,"featured_media":657353,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7215],"tags":[6641,633,7087,638,8370],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-657352","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-your-commute","tag-chatgpt","tag-enterprisepm","tag-finance","tag-for-your-commute","tag-openai","wpautop","entry"],"acf":{"mongo_id":"23f7c1bb-667d-4fdf-94a1-72f3e23f88b8","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/12\/1758.jpg","photo_position":"below","homepage_title":"","full_issue_title":"","related_issue":[657347],"teaser":"After raising USD 10 bn last year, the company spent most of it in just 18 months","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/12\/.892e2549-b9b3-46ee-8d1d-486e4724ddf6.mp3"},"yoast_head":"\nOpenAI is on a spending spree - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2024\/12\/18\/openai-is-on-a-spending-spree\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"OpenAI is on a spending spree\" \/>\n<meta property=\"og:description\" content=\"After raising USD 10 bn last year, the company spent most of it in just 18 months\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2024\/12\/18\/openai-is-on-a-spending-spree\/\" \/>\n<meta property=\"og:site_name\" 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