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There have been a number of red and yellow flags for AI companies and the AI industry lately. I’m going to run through a few of them here.
Many people use AI chatbots, but the free versions. Getting enough revenue through subscriptions is one way AI companies could cover their enormous costs, but that is looking unlikely. Another option is by inserting ads (as most “publishing” businesses have had to do for ages). However, it’s not clear if that will be enough either, and recent news is definitely not uplifting the industry in that regard.
OpenAI aims to get $100 billion a year from ads. However, that’s far away from the ~$1 billion it’s currently scrapping to earn and the $2.5 billion it has projected for this year. “OpenAI’s Ad Business Is on Pace to Miss Its Own Forecast By 90%, Analyst Says,” the title of an AdWeek article states. A new analysis from Emarketer estimates that OpenAI’s ad revenue is likely to fall short by 90% in 2030.
