Reported about 1 month ago
Microsoft has reportedly paused its funding for OpenAI after concerns about financial sustainability and governance, sparking a broader discussion on the precarious position of private AI firms that are heavily burning cash. Experts warn that, while the AI sector requires massive investments, the current market is volatile, and many startups are struggling to turn profits except for a few like Nvidia. As companies navigate these challenges, there might be compromises and new partnerships in this high-stakes game, with the IPO market expected to see activity in 2025 despite significant hurdles.
Source: YAHOO