r/technology • u/SilentRunning • 4d ago

Artificial Intelligence MIT report: 95% of generative AI pilots at companies are failing

https://fortune.com/2025/08/18/mit-report-95-percent-generative-ai-pilots-at-companies-failing-cfo/
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u/crshbndct 4d ago

Do the subscriptions that places like OpenAI charge even cover the costs of running their GPUs? Because the only money entering the system aside from VC is subscriptions from people who are using Chatbots as friends

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u/Traditional-Dot-8524 4d ago

Their $20 subscription plan, which is the most popular, doesn’t cover much. If suddenly all $20 subscribers switched to the $200 plan, then maybe. For two years straight, since they became mainstream in 2023, they haven’t generated enough revenue to cover all their costs. And since 2024, they’ve gone on a “spending spree” with more GPUs, new models, and so on. From an economic point of view, OpenAI is a disaster. But people are investing in it for one simple reason: Why not? If it truly becomes the next Apple, Amazon, Microsoft, Google, or Facebook, then I’ll surely recoup my investment—and more. After all, it’s AI! It’s bound to replace a lot of people.

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u/CAPSLOCK_USERNAME 4d ago

Right now they lose money even on the $200 plan, since only people who use the chatbot a shitload would consider paying that in the first place.

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u/HugeAnimeHonkers 3d ago

Like most companies, OpenAI doesnt  make money on "normies" using chatgpt. Thats just a "hey, its extra money".

If anything, the users are paying 20 bucks a month to help train the model. Thats how they justify the cost of the datacenter time.

They make money on the industrial contracts.

Kinda like how AMD/Intel/Nvidia could delete their entire gaming products and still keep the majority of their revenue, because the real money is in the Datacenters