Generative AI is framed as a costly and unsustainable industry, lacking real profitability. OpenAI, the leading player, reportedly lost $5 billion after generating $4 billion in revenue in 2024, spending $9 billion overall due to high operational and talent costs. The software model is unscalable and loses money on every prompt. Metrics like “weekly active users” can be misrepresented; OpenAI's user base is over 400 million, yet substantial conversion to paying customers is very low. The market is dominated by OpenAI, with limited competition and widespread unprofitability in the AI sector, raising doubts about the industry's legitimacy.
There Is No AI Revolution
