During an interview on investor Brad Gerstner’s BG2 podcast, OpenAI CEO Sam Altman bristled at questions regarding the company’s enormous infrastructure spending commitments in the face of much smaller revenues. Altman turned a friendly interview with an OpenAI supporter into a tense exchange that has gone viral, a preview of OpenAI’s potential interactions with investors if the company goes public.
OpenAI, the developer of the hugely popular AI chatbot ChatGPT, has been on a spending spree to build out its AI infrastructure as it pursues artificial general intelligence. However, recently released Microsoft earnings suggest the company lost a staggering $11.5 billion last quarter. Even ChatGPT, which accounts for the majority of OpenAI’s revenue, appears to be struggling to convert its massive user base of 800 million into paying subscribers, with only about five percent opting for a subscription.
When Gerstner directly asked Altman to explain how a company with $13 billion in revenue could justify $1.4 trillion in spending commitments, a visibly annoyed Altman retorted, “If you want to sell your shares, I’ll find you a buyer. Enough.” He went on to assert that there were plenty of people who would eagerly buy shares from any concerned investors. The question, from an OpenAI shareholder and supporter, was obviously designed to tee up Altman to make his case on the strength of OpenAI’s business.
The heated exchange underscores growing worries about an AI bubble, with companies increasingly under pressure to demonstrate returns on investment to their backers. Altman himself recently acknowledged that investors are currently “overexcited about AI,” a situation that could lead to significant financial losses.
Altman’s curt response also indicates a growing weariness with having to justify OpenAI’s substantial expenditures, even in the face of reasonable investor inquiries. While disputing Gerstner’s revenue estimate, Altman declined to provide specific figures, simply stating that “revenue is growing steeply” and the company is betting on continued growth.
As a private company, OpenAI isn’t obligated to disclose its financial details. However, this may change soon, with reports indicating the company is preparing for a potential initial public offering that could value it at up to $1 trillion. Altman seemingly alluded to this possibility, jokingly expressing a desire to see short sellers “get burned” if OpenAI goes public.
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Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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