OpenAI is reportedly chasing new revenue streams, debt partnerships, and additional fundraising as part of a five-year plan to fulfill its $1 trillion spending pledge to advance artificial intelligence.
Five-Year Plan To Take Shape
The Sam Altman-led company is planning to offer bespoke AI products for governments and businesses, new shopping tools, and sales from its video creation service Sora and AI agents, according to a report by the Financial Times on Wednesday.
The company is also considering "creative plans" to raise new debt to expand its AI infrastructure and potentially become a supplier of computing resources through its Stargate data center initiative, according to the report.
OpenAI is also exploring ways to monetize its intellectual property, expand into online advertising, and develop consumer hardware products - including an AI-powered personal assistant device designed in collaboration with former Apple
Senior OpenAI executive told the publication, "[investors] expect you to have a five-year model", but added "right now I'd say there's lots of fuzz on the horizon, and as it gets closer and it's going to start to take real shape".
The company did not respond to Benzinga's request for comment.
Big Commitment Sparks Financing Concerns
CEO Sam Altman has pledged to secure more than 26 gigawatts of computing capacity from partners such as Oracle
The massive commitment has sparked concerns about the company's ability to finance it and its potential ripple effects on the broader economy.
OpenAI books about $13 billion in annual recurring revenue, 70% of which comes from consumers using ChatGPT, according to the FT.
ChatGPT has more than 800 million regular users, but just 5% of those are paying subscribers, a number OpenAI intends to double, the report added.
The company's financial situation came under scrutiny when it was revealed that it lacked the funds to honor its $300 billion deal with Oracle Corporation
Still, OpenAI managed to reach a valuation of $500 billion in October, overtaking Elon Musk's SpaceX to become the world's largest startup.
