OpenAI Intensifies Profit Push Amid Rising AI Competition
OpenAI has increased its compute margin to 70% as it races toward profitability, despite a $500 billion valuation and persistent revenue challenges. The AI leader faces mounting pressure as Google's Gemini outperforms benchmarks, triggering internal urgency—CEO Sam Altman declared a 'code red,' diverting resources to ChatGPT upgrades at the expense of planned ad services.
Financial sustainability remains elusive. While OpenAI claims superior compute margins over Anthropic for paid accounts, its server costs loom large. Altman projects audacious revenue targets: $20 billion run-rate by year-end, scaling to 'hundreds of billions' by 2030. The company now leans heavily on monetizing business tools in sectors like banking and education, where it clashes with Google and Anthropic.
