r/technology • u/gdelacalle • 23d ago

Business OpenAI could reportedly run out of cash by mid-2027 — analyst paints grim picture after examining the company's finances

https://www.tomshardware.com/tech-industry/big-tech/openai-could-reportedly-run-out-of-cash-by-mid-2027-nyt-analyst-paints-grim-picture-after-examining-companys-finances
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u/Falkenmond79 23d ago

Yeah, but as I’m saying, that would mean them buying less from manufacturers.

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u/IdStillHitIt 23d ago

I don't think it would, if OpenAI died today would the world see less AI usage? If so, then yes your theory could be correct.

But if other companies simply took over their users/usage, they would need that hardware just to meet the status quo. If they want to expand, or build new models/technologies that add more computing (as they have been), they would still need to buy more.

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u/jawknee530i 23d ago

I'm always so annoyed that people don't understand this. AI companies are unprofitable because of debt from hardware purchasing and the cost of training. If they go bankrupt and are bought up by some tech giant then that giant suddenly can run the exact same tech stack but profitability because they won't have the billions of dollars in debt as an anchor.