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OpenAI Is In A Far Worse Position Than Anyone Thought It Was
This is damning.
Everyone with even a modicum of sense has been predicting OpenAI’s self-inflicted demise for a while now. It is painfully obvious that this is not a sustainable business. Their product is insanely expensive and has basically no economies of scale, and while it might be impressive to a specific breed of narcissists and sycophants, it simply doesn’t bring in enough cash to cover its ludicrous operational costs. OpenAI is more akin to a cash-hungry black hole than a sustainable business. Many, including myself, have predicted that it will go bankrupt soon (read more here). But it turns out OpenAI’s ship is sinking significantly faster than even the most pessimistic predicted. Let me explain.
This revelation comes from Ed Zitron, who received an exclusive look at OpenAI’s IPO filings, which detailed the company’s actual balance sheet for 2024 and 2025. But before we dive into this information, to truly wrap our heads around the news, we need some context. Currently, OpenAI is a private company, which means that we don’t have a clear view of its financials. So, analysts have had to estimate its balance sheets based on Sam Altman’s breadcrumb clues. Would you like to hear people’s predictions for OpenAI’s 2025 financials?
