Compute Costs

AI foundation model developers face intense investor scrutiny this year as they pursue public listings. This period is critical for monetization, pricing power, and compute costs. OpenAI, facing substantial cash burn despite user growth, is particularly exposed. While generating significant revenue, its path to profitability and the sustainability of its business model are under scrutiny. Competitors like Anthropic are also preparing for potential IPOs, navigating a landscape where investor focus shifts from user scale to tangible financial returns.