Microsoft economist's hot take: Let it burn first

This post discusses how OpenAI is burning $17 billion annually despite $20+ billion in revenue because unit economics for AI inference are fundamentally broken, with the company losing more money on queries than it generates in revenue. OpenAI's projected cash burn through 2029 is estimated at $115 billion. The analysis contrasts OpenAI's consumer-focused strategy with competitors like Anthropic, which targeted enterprise customers where margins are better.

Source: r/ChatGPT | 2026-05-25