OpenAI Is a Bad Business

OpenAI is converting to a for-profit company and raising $6.6 billion at a $157 billion valuation, despite losing $4-5 billion this year. The company expects to make $3.7 billion in revenue in 2023, mostly from ChatGPT subscriptions, but projects unrealistic growth to $100 billion by 2029. OpenAI spends $2.35 to make $1, with costs likely to increase as usage grows. The company faces increasing competition and commoditization of its AI models, while struggling to create compelling new products or profitable use cases for its technology.