Is the AI business model about to fail? A tech blogger uncovers OpenAI’s “financial black hole”: The burn rate is three times the publicly available data, and revenues are overstated while unable to cover costs!

Techblogger Ed Zitron, citing internal documents, revealed that OpenAI faces a significant ‘financial black hole,’ with its actual inference costs potentially three times higher than publicly disclosed figures. Moreover, the revenue derived from Microsoft’s revenue-sharing is far lower than officially claimed, making it difficult for income to cover the staggering expenses. If these figures are accurate, not only will OpenAI’s business model face questions about sustainability, but the profitability outlook of the entire generative AI industry could also be fundamentally overturned.