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OpenAI Says Its Business Will Burn $115 Billion Through 2029

3 months 2 weeks ago
An anonymous reader shares a report: OpenAI recently had both good news and bad news for shareholders. Revenue growth from ChatGPT is accelerating at a more rapid rate than the company projected half a year ago. The bad news? The computing costs to develop artificial intelligence that powers the chatbot, and other data center-related expenses, will rise even faster. As a result, OpenAI projected its cash burn this year through 2029 will rise even higher than previously thought, to a total of $115 billion. That's about $80 billion higher than the company previously expected. The unprecedented projected cash burn, which would add to the roughly $2 billion it burned in the past two years, helps explain why the company is raising more capital than any private company in history.

Read more of this story at Slashdot.

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The New American Hustle: Dividends Over Day Jobs

3 months 2 weeks ago
Young Americans are abandoning traditional retirement planning for dividend-focused ETFs that promise immediate income and freedom from traditional employment. Income-generating ETFs captured one in six dollars flowing into equity ETFs in 2025, pushing the sector to $750 billion -- with the most aggressive funds offering yields above 8% quadrupling to $160 billion over three years. The r/dividends subreddit has grown tenfold to 780,000 members over five years, while YouTube channels and Discord servers dedicated to dividend investing proliferate. YieldMax's MSTY fund, offering a 90% distribution rate through complex derivatives, has underperformed MicroStrategy stock by 120 percentage points since February 2024 when dividends are reinvested -- nearly 200 points when payouts are withdrawn. Speaking to Bloomberg, finance professor Samuel Hartzmark identified this as the "free dividends fallacy," where investors fail to recognize that dividends reduce share prices rather than creating additional wealth.

Read more of this story at Slashdot.

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