"Many of your competitors have already integrated AI into their devices, and it's just not clear yet what incremental monetization they're seeing because of AI...," started Morgan Stanley's Erik Woodring. Could there be a tinge of nervousness underneath this Finance Man's probably-very-financey facade? In what I can only imagine must have been a Herculean display of courage, Woodring asked the question that lurks only in the darkest, dampest recesses of investors' minds."
"Take OpenAI, for instance, which may seem like it's on top of the world, given how ChatGPT has embedded itself into the cultural consciousness. But the company isn't planning to make any money until 2030. Analysts from HBSC are even doubtful about that timeline, especially since it will need another $207 billion in funding, estimates say. Ask anyone in tech how OpenAI is planning to break even, and you'll be met with the verbal equivalent of the ¯\_(ツ)_/¯ emoticon."
Apple reported $143.8 billion in revenue, a 16% year-over-year increase. Morgan Stanley analyst Erik Woodring questioned how AI initiatives will be monetized given added costs. Competitors have integrated AI into devices, but clear incremental monetization remains elusive. Many Big Tech AI efforts lack defined profit paths and emphasize development over immediate revenue. OpenAI does not expect to make money until 2030 and may need roughly $207 billion more funding, prompting skepticism from some analysts. Tim Cook emphasized integrating intelligence across systems and devices but did not present a concrete monetization plan, leaving investor concerns unresolved.
Read at TechCrunch
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