As OpenAI continues its meteoric rise — boasting billions in revenue from ChatGPT and API usage while dominating headlines — the company faces a stark financial reality that could threaten its very existence. In a new New York Times opinion piece this week, historian and financial expert Sebastian Mallaby warns that despite massive fundraising rounds and explosive growth, OpenAI is hemorrhaging cash at an unprecedented scale, with projections suggesting it could run out of money within the next 18 months if current burn rates persist and new capital doesn’t materialize. This dire prediction for OpenAI highlights the high-stakes gamble of frontier AI development: enormous compute costs, relentless R&D spending, and losses in the billions annually — even as revenue surges. While OpenAI eyes eye-popping valuations and potential mega-rounds (including talks of $40–100B raises), the clock is ticking on whether investor enthusiasm can outpace the burn. Sebastian Mallaby, senior fellow at the Council on Foreign Relations, for The New York Times:
There is a very real possibility that as Creative Technology was to MP3 players, OpenAI will be to GenAI. Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Sam Altman’s OpenAI could go bankrupt in the next 18 months appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription. |
Thursday, January 15, 2026
Sam Altman’s OpenAI could go bankrupt in the next 18 months
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