OpenAI on verge of bankruptcy and heading for $5B in losses: Report (opens in new tab)

Every startup is "on verge of bankruptcy" by this metric.

You're only "on verge of bankruptcy" if you're in this situation and no one is willing to give you any money.

Summary: OpenAI is planning a raise in the next 12 months, current burn rate is $5B, $2B revenue.

If they were on the verge of bankruptcy any number of tech giants would gobble them up immediately. Apple is essentially relying on them to make Siri actually usable in their next iOS for example. Google is scrambling to make their search product stand up against ChatGPT and the SearchGPT. Microsoft is in a strategic agreement with OpenAI from the last I've read on the subject.

OpenAI is quickly approaching that "Too big to fail" level, whether that's a good thing or not.

It's not possible to fully evaluate and judge the utility of LLMs at this time because the real, true costs are still largely unknown.

A less dramatic headline would be: OpenAI will be doing another fundraising round soon

I love that this story got kicked off the front page the moment it reached it. Not suspicious at all.