OpenAI is burning through cash at an accelerating pace as costs for advanced AI systems continue to rise. Analysts estimate the company could post net losses of around $14 billion this year, with profitability not expected until 2030. At its current spending rate, OpenAI could exhaust available cash within 18 months, raising concerns about its financial runway.
Rising expenses are driven by the need for high-end processors, cloud capacity, and energy-intensive data centers to train and operate large AI models. Competition for hardware and specialized talent has further pushed costs higher. Some expenses have been offset by compensating employees and partners with equity, but analysts say this does not close the gap between spending and revenue.
The cash crunch highlights a broader industry challenge: monetization lags behind investment. Analysts expect mounting pressure on AI firms to demonstrate sustainable revenue models through enterprise contracts, licensing, or more efficient model architectures over the next 18 months.
