OpenAI's Sam Altman hinted at a potential new direction for the company, suggesting that the AI startup might start offering compute capacity directly to other businesses and individuals.
Taking On Tech Giants
If OpenAI goes through with it, this move could position it as a competitor to established cloud service providers like Microsoft Corp.'s (NASDAQ:MSFT) Azure, Amazon.com Inc.'s (NASDAQ:AMZN) AWS, and Alphabet Inc.-owned (NASDAQ:GOOG) (NASDAQ:GOOGL) Google's Cloud Platform.
"We are also looking at ways to more directly sell compute capacity to other companies (and people); we are pretty sure the world is going to need a lot of ‘AI cloud’, and we are excited to offer this," Altman said in a post on X.
Clarifying Misunderstandings
Altman’s comments came as he sought to clarify misunderstandings circulating on social media. He emphasized the growing demand for AI cloud services and expressed excitement about OpenAI’s potential role in meeting this need. The announcement raises questions about how OpenAI plans to finance its recent $1 trillion AI infrastructure deals.
OpenAI CFO Sarah Friar had previously hinted at this strategic shift, according to a report by Business Insider. In September, she noted that cloud providers have been benefiting from OpenAI’s expertise without compensating the company, suggesting a desire to capitalize on their own AI advancements.
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OpenAI's Revenue Growth
Altman’s remarks have sparked speculation about OpenAI’s future business model and its ability to generate returns on significant infrastructure investments. The potential development of a cloud service could alleviate investor concerns and provide a clearer path for OpenAI’s financial growth.
Recently, Altman revealed that OpenAI’s revenue has surpassed the $13 billion estimate, with projections to reach $100 billion by 2027.
In August, Altman indicated that OpenAI might need to go public to sustain its ambitious spending on AI infrastructure, drawing parallels to the 1990s dot-com bubble.
Altman also firmly denied any intentions of seeking government bailouts, emphasizing that OpenAI does not desire federal guarantees for its data centers.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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