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OpenAI Is Just 0 Billion Away From Still Losing Money, HSBC Says

OpenAI Is Just $200 Billion Away From Still Losing Money, HSBC Says

OpenAI has committed more than $1.4 trillion that it will spend on building out its data center infrastructure to power the development and deployment of its AI models over the next eight years. Notably, OpenAI does not have $1.4 trillion. Also notable is the fact that the company doesn’t make that much money. That means it’ll remain reliant primarily on fundraising rounds to pay the bills as they come due. According to a report from the Financial Times, all OpenAI has to do is raise $207 billion by 2030 in order to keep operating at a deep loss. Easy peasy!

The report cites a recent analysis of OpenAI’s finances from HSBC, the British multinational financial services giant, which has taken into account the AI startup’s planned spending on infrastructure, compute, and energy costs, as well as its projected revenue to offset all those costs.

The bank estimates that OpenAI will run up a bill of $620 billion per year on data center costs, with a caveat that it has signed contracts for more computing power than is actually available at the moment. Then it created an estimate for the company’s customer reach, which is currently reported to be 800 million by OpenAI’s count and will reach three billion by 2030 under HSBC’s model. The bank generously estimates that OpenAI will convert 10% of that reach into paying customers, double its current rate of 5%. Those estimates are more generous than OpenAI’s reported internal ones, which have the company reaching 2.6 billion and converting 8.5% of them to paying subscribers by the end of the decade. HSBC also tosses OpenAI some advertising revenue under the assumption that LLM firms will take about 2% of the total digital ad market in the coming years.

With all that, HSBC projects that OpenAI will hit about $215 billion in annual revenue by 2030. That, once again, tops OpenAI’s own projections, which reportedly put it at about $200 billion annually by the end of the decade. Both models are calling for what is basically unprecedented growth, but let’s roll with it. Taking into account OpenAI’s current cash flow plus its projected expectation-busting growth projections would still leave the company with a funding deficit of $207 billion. Per HSBC, the company will need to raise that much just to continue operating in the red.

OpenAI has options to shrink that funding gap, though none of them are all that appealing. The company could back out of some of its data center commitments to shrink its expenditures, though it might not provide much comfort to investors who are counting on something closer to infinite growth. It could also blow past even the generous revenue projections made by HSBC, which seems unlikely and not really something it can just manufacture. If generating revenue were easy, the company would be doing it.

Then there’s the other option that OpenAI execs started floating before immediately getting push back: get a government bailout. Contingency plans usually aren’t a bad idea, but it probably doesn’t instill a whole lot of confidence that you’re planning on the possibility of failing so hard that you might drag the entire economy down with you.

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#OpenAI #Billion #Losing #Money #HSBC

We were working on a successor but with memory prices where they are right now, we can’t build a phone that feels like a genuine step forward at a price that makes sense for CMF. As a result, we’ve decided not to launch a new CMF phone this year.

Last week, Nothing CEO and co-founder Carl Pei also said the RAM shortage has impacted the cost of the company’s mid-range phone, stating, “For Phone 4A, memory costs doubled between when we decided to build the device and when it launched. They’ve doubled again since.” According to Pei, “memory is now the most expensive component in a smartphone.” Nothing is far from the only company facing RAM pricing challenges — earlier this week, Tim Cook announced Apple will be raising prices, saying “the situation has become unsustainable.”

While there won’t be a new CMF phone this year, Evangelidis added in his post that CMF still has “several new products launching as well as some entirely new categories.” He also hinted that “the smartphone launch season at Nothing isn’t over yet.”

#cancels #years #CMF #phone #due #RAM #pricesGadgets,Mobile,News,Phones,Tech">Nothing cancels this year’s CMF phone due to RAM pricesNothing’s next budget phone is the latest victim of RAMageddon. As 9to5Google reports, Nothing co-founder Akis Evangelidis announced in a post on X that a follow-up to the CMF Phone 2 Pro won’t be coming this year:We were working on a successor but with memory prices where they are right now, we can’t build a phone that feels like a genuine step forward at a price that makes sense for CMF. As a result, we’ve decided not to launch a new CMF phone this year.Last week, Nothing CEO and co-founder Carl Pei also said the RAM shortage has impacted the cost of the company’s mid-range phone, stating, “For Phone 4A, memory costs doubled between when we decided to build the device and when it launched. They’ve doubled again since.” According to Pei, “memory is now the most expensive component in a smartphone.” Nothing is far from the only company facing RAM pricing challenges — earlier this week, Tim Cook announced Apple will be raising prices, saying “the situation has become unsustainable.”While there won’t be a new CMF phone this year, Evangelidis added in his post that CMF still has “several new products launching as well as some entirely new categories.” He also hinted that “the smartphone launch season at Nothing isn’t over yet.”#cancels #years #CMF #phone #due #RAM #pricesGadgets,Mobile,News,Phones,Tech

9to5Google reports, Nothing co-founder Akis Evangelidis announced in a post on X that a follow-up to the CMF Phone 2 Pro won’t be coming this year:

We were working on a successor but with memory prices where they are right now, we can’t build a phone that feels like a genuine step forward at a price that makes sense for CMF. As a result, we’ve decided not to launch a new CMF phone this year.

Last week, Nothing CEO and co-founder Carl Pei also said the RAM shortage has impacted the cost of the company’s mid-range phone, stating, “For Phone 4A, memory costs doubled between when we decided to build the device and when it launched. They’ve doubled again since.” According to Pei, “memory is now the most expensive component in a smartphone.” Nothing is far from the only company facing RAM pricing challenges — earlier this week, Tim Cook announced Apple will be raising prices, saying “the situation has become unsustainable.”

While there won’t be a new CMF phone this year, Evangelidis added in his post that CMF still has “several new products launching as well as some entirely new categories.” He also hinted that “the smartphone launch season at Nothing isn’t over yet.”

#cancels #years #CMF #phone #due #RAM #pricesGadgets,Mobile,News,Phones,Tech">Nothing cancels this year’s CMF phone due to RAM prices

Nothing’s next budget phone is the latest victim of RAMageddon. As 9to5Google reports, Nothing co-founder Akis Evangelidis announced in a post on X that a follow-up to the CMF Phone 2 Pro won’t be coming this year:

We were working on a successor but with memory prices where they are right now, we can’t build a phone that feels like a genuine step forward at a price that makes sense for CMF. As a result, we’ve decided not to launch a new CMF phone this year.

Last week, Nothing CEO and co-founder Carl Pei also said the RAM shortage has impacted the cost of the company’s mid-range phone, stating, “For Phone 4A, memory costs doubled between when we decided to build the device and when it launched. They’ve doubled again since.” According to Pei, “memory is now the most expensive component in a smartphone.” Nothing is far from the only company facing RAM pricing challenges — earlier this week, Tim Cook announced Apple will be raising prices, saying “the situation has become unsustainable.”

While there won’t be a new CMF phone this year, Evangelidis added in his post that CMF still has “several new products launching as well as some entirely new categories.” He also hinted that “the smartphone launch season at Nothing isn’t over yet.”

#cancels #years #CMF #phone #due #RAM #pricesGadgets,Mobile,News,Phones,Tech
You’ve probably used VLC Media Player, the free video player with the orange traffic-cone icon — it’s been downloaded more than 6 billion times. But according to its lead developer, Jean-Baptiste Kempf, robots will soon be almost as ubiquitous as his open source video software.

Convinced that “hundreds of millions of robots and drones” will be roaming the streets in a few years, this French serial entrepreneur and open-source legend has been building Kyber, an infrastructure layer for controlling remote devices in real time. Its core software is an SDK that synchronizes video, audio, sensor data, and control inputs with minimal latency.

This lines up well with the rise of physical AI, and it’s part of why the Paris-based startup was able to raise a $5 million round led by Lightspeed, which has also backed Anthropic and Mistral AI. “Physical AI is only as good as the underlying systems running it,” the American VC firm wrote in a LinkedIn post announcing its investment.

Kyber’s potential applications go well beyond AI, though. Kempf told TechCrunch the platform is built for “all the use cases where the person who’s operating is not in the same place as the compute, which is not in the same place as the action.”

Remote control is one half of the equation; speed is the other — and it’s what inspired the startup’s name, a nod to the lightsaber crystals in Star Wars. “If you control things in the real world, every millisecond matters,” Kempf said.

Kyber’s approach to eliminating lag is rooted firmly in video-streaming technology. The company started as a side project Kempf built while CTO at cloud gaming startup Shadow, and its early focus on streaming makes the VLC connection an easy one to draw. But IoT expertise matters just as much for optimization — tuning performance to a device’s available compute, at scale — the other core piece of what Kyber does.

Kempf says other companies with the resources and the need have already built similar software for their own use cases, like remote driving. “But the largest fleets today have maybe 2,000 or 3,000 vehicles. Imagine you need to manage millions of them; that’s not the same thing.”

That jump in scale also raises the stakes on observability — knowing systems are actually working will matter even more when AI agents, not people, are managing entire fleets and networks. Even at much smaller scale, though, there’s a real benefit: not needing to physically reach every device just to push a software update, for example.

That range — from a handful of devices to millions — means Kyber’s user base will likely span far more companies than will ever become paying customers. True to Kempf’s roots, the core project is open source, while the company sells a productized version to enterprise customers. And it’s not just software: like Palantir and others, Kyber also offers hands-on, custom deployment through forward-deployed engineers, or FDEs.

FDEs make up a large part of Kyber’s team, which currently numbers 25 full-time staffers. The startup is headquartered in Paris but has offices in San Francisco and Singapore to support what it expects will be a global client base across a variety of industries. The company says it is already in commercial deployment with customers in defense, telco, robotics, and AI.

To focus its efforts, Kyber has been prioritizing three segments: robotics, drones of every kind, and remote IT access, where demand has been particularly strong. In that last segment, Kempf says Kyber aspires to be more than just a Citrix challenger — but even that comparison alone points to a sizable total addressable market.

Remote IT access isn’t exactly glamorous, but Kempf seems energized by the problem — and Kyber’s careers page hints at why: “The companies that tried to solve it spent years and tens of millions building custom solutions they’ll never share. We’re building the version everyone else can use.”

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#free #video #player #run #smoothly #hes #robots #TechCrunchIoT,Kyber,open source software,physical ai,VLC">He made your free video player run smoothly. Now he’s doing that for robots. | TechCrunch
You’ve probably used VLC Media Player, the free video player with the orange traffic-cone icon — it’s been downloaded more than 6 billion times. But according to its lead developer, Jean-Baptiste Kempf, robots will soon be almost as ubiquitous as his open source video software.

Convinced that “hundreds of millions of robots and drones” will be roaming the streets in a few years, this French serial entrepreneur and open-source legend has been building Kyber, an infrastructure layer for controlling remote devices in real time. Its core software is an SDK that synchronizes video, audio, sensor data, and control inputs with minimal latency.







This lines up well with the rise of physical AI, and it’s part of why the Paris-based startup was able to raise a  million round led by Lightspeed, which has also backed Anthropic and Mistral AI. “Physical AI is only as good as the underlying systems running it,” the American VC firm wrote in a LinkedIn post announcing its investment.

Kyber’s potential applications go well beyond AI, though. Kempf told TechCrunch the platform is built for “all the use cases where the person who’s operating is not in the same place as the compute, which is not in the same place as the action.”

Remote control is one half of the equation; speed is the other — and it’s what inspired the startup’s name, a nod to the lightsaber crystals in Star Wars. “If you control things in the real world, every millisecond matters,” Kempf said.

Kyber’s approach to eliminating lag is rooted firmly in video-streaming technology. The company started as a side project Kempf built while CTO at cloud gaming startup Shadow, and its early focus on streaming makes the VLC connection an easy one to draw. But IoT expertise matters just as much for optimization — tuning performance to a device’s available compute, at scale — the other core piece of what Kyber does.

Kempf says other companies with the resources and the need have already built similar software for their own use cases, like remote driving. “But the largest fleets today have maybe 2,000 or 3,000 vehicles. Imagine you need to manage millions of them; that’s not the same thing.”


That jump in scale also raises the stakes on observability — knowing systems are actually working will matter even more when AI agents, not people, are managing entire fleets and networks. Even at much smaller scale, though, there’s a real benefit: not needing to physically reach every device just to push a software update, for example.

That range — from a handful of devices to millions — means Kyber’s user base will likely span far more companies than will ever become paying customers. True to Kempf’s roots, the core project is open source, while the company sells a productized version to enterprise customers. And it’s not just software: like Palantir and others, Kyber also offers hands-on, custom deployment through forward-deployed engineers, or FDEs.

FDEs make up a large part of Kyber’s team, which currently numbers 25 full-time staffers. The startup is headquartered in Paris but has offices in San Francisco and Singapore to support what it expects will be a global client base across a variety of industries. The company says it is already in commercial deployment with customers in defense, telco, robotics, and AI.







To focus its efforts, Kyber has been prioritizing three segments: robotics, drones of every kind, and remote IT access, where demand has been particularly strong. In that last segment, Kempf says Kyber aspires to be more than just a Citrix challenger — but even that comparison alone points to a sizable total addressable market.

Remote IT access isn’t exactly glamorous, but Kempf seems energized by the problem — and Kyber’s careers page hints at why: “The companies that tried to solve it spent years and tens of millions building custom solutions they’ll never share. We’re building the version everyone else can use.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.#free #video #player #run #smoothly #hes #robots #TechCrunchIoT,Kyber,open source software,physical ai,VLC

Kyber, an infrastructure layer for controlling remote devices in real time. Its core software is an SDK that synchronizes video, audio, sensor data, and control inputs with minimal latency.

This lines up well with the rise of physical AI, and it’s part of why the Paris-based startup was able to raise a $5 million round led by Lightspeed, which has also backed Anthropic and Mistral AI. “Physical AI is only as good as the underlying systems running it,” the American VC firm wrote in a LinkedIn post announcing its investment.

Kyber’s potential applications go well beyond AI, though. Kempf told TechCrunch the platform is built for “all the use cases where the person who’s operating is not in the same place as the compute, which is not in the same place as the action.”

Remote control is one half of the equation; speed is the other — and it’s what inspired the startup’s name, a nod to the lightsaber crystals in Star Wars. “If you control things in the real world, every millisecond matters,” Kempf said.

Kyber’s approach to eliminating lag is rooted firmly in video-streaming technology. The company started as a side project Kempf built while CTO at cloud gaming startup Shadow, and its early focus on streaming makes the VLC connection an easy one to draw. But IoT expertise matters just as much for optimization — tuning performance to a device’s available compute, at scale — the other core piece of what Kyber does.

Kempf says other companies with the resources and the need have already built similar software for their own use cases, like remote driving. “But the largest fleets today have maybe 2,000 or 3,000 vehicles. Imagine you need to manage millions of them; that’s not the same thing.”

That jump in scale also raises the stakes on observability — knowing systems are actually working will matter even more when AI agents, not people, are managing entire fleets and networks. Even at much smaller scale, though, there’s a real benefit: not needing to physically reach every device just to push a software update, for example.

That range — from a handful of devices to millions — means Kyber’s user base will likely span far more companies than will ever become paying customers. True to Kempf’s roots, the core project is open source, while the company sells a productized version to enterprise customers. And it’s not just software: like Palantir and others, Kyber also offers hands-on, custom deployment through forward-deployed engineers, or FDEs.

FDEs make up a large part of Kyber’s team, which currently numbers 25 full-time staffers. The startup is headquartered in Paris but has offices in San Francisco and Singapore to support what it expects will be a global client base across a variety of industries. The company says it is already in commercial deployment with customers in defense, telco, robotics, and AI.

To focus its efforts, Kyber has been prioritizing three segments: robotics, drones of every kind, and remote IT access, where demand has been particularly strong. In that last segment, Kempf says Kyber aspires to be more than just a Citrix challenger — but even that comparison alone points to a sizable total addressable market.

Remote IT access isn’t exactly glamorous, but Kempf seems energized by the problem — and Kyber’s careers page hints at why: “The companies that tried to solve it spent years and tens of millions building custom solutions they’ll never share. We’re building the version everyone else can use.”

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#free #video #player #run #smoothly #hes #robots #TechCrunchIoT,Kyber,open source software,physical ai,VLC">He made your free video player run smoothly. Now he’s doing that for robots. | TechCrunch

You’ve probably used VLC Media Player, the free video player with the orange traffic-cone icon — it’s been downloaded more than 6 billion times. But according to its lead developer, Jean-Baptiste Kempf, robots will soon be almost as ubiquitous as his open source video software.

Convinced that “hundreds of millions of robots and drones” will be roaming the streets in a few years, this French serial entrepreneur and open-source legend has been building Kyber, an infrastructure layer for controlling remote devices in real time. Its core software is an SDK that synchronizes video, audio, sensor data, and control inputs with minimal latency.

This lines up well with the rise of physical AI, and it’s part of why the Paris-based startup was able to raise a $5 million round led by Lightspeed, which has also backed Anthropic and Mistral AI. “Physical AI is only as good as the underlying systems running it,” the American VC firm wrote in a LinkedIn post announcing its investment.

Kyber’s potential applications go well beyond AI, though. Kempf told TechCrunch the platform is built for “all the use cases where the person who’s operating is not in the same place as the compute, which is not in the same place as the action.”

Remote control is one half of the equation; speed is the other — and it’s what inspired the startup’s name, a nod to the lightsaber crystals in Star Wars. “If you control things in the real world, every millisecond matters,” Kempf said.

Kyber’s approach to eliminating lag is rooted firmly in video-streaming technology. The company started as a side project Kempf built while CTO at cloud gaming startup Shadow, and its early focus on streaming makes the VLC connection an easy one to draw. But IoT expertise matters just as much for optimization — tuning performance to a device’s available compute, at scale — the other core piece of what Kyber does.

Kempf says other companies with the resources and the need have already built similar software for their own use cases, like remote driving. “But the largest fleets today have maybe 2,000 or 3,000 vehicles. Imagine you need to manage millions of them; that’s not the same thing.”

That jump in scale also raises the stakes on observability — knowing systems are actually working will matter even more when AI agents, not people, are managing entire fleets and networks. Even at much smaller scale, though, there’s a real benefit: not needing to physically reach every device just to push a software update, for example.

That range — from a handful of devices to millions — means Kyber’s user base will likely span far more companies than will ever become paying customers. True to Kempf’s roots, the core project is open source, while the company sells a productized version to enterprise customers. And it’s not just software: like Palantir and others, Kyber also offers hands-on, custom deployment through forward-deployed engineers, or FDEs.

FDEs make up a large part of Kyber’s team, which currently numbers 25 full-time staffers. The startup is headquartered in Paris but has offices in San Francisco and Singapore to support what it expects will be a global client base across a variety of industries. The company says it is already in commercial deployment with customers in defense, telco, robotics, and AI.

To focus its efforts, Kyber has been prioritizing three segments: robotics, drones of every kind, and remote IT access, where demand has been particularly strong. In that last segment, Kempf says Kyber aspires to be more than just a Citrix challenger — but even that comparison alone points to a sizable total addressable market.

Remote IT access isn’t exactly glamorous, but Kempf seems energized by the problem — and Kyber’s careers page hints at why: “The companies that tried to solve it spent years and tens of millions building custom solutions they’ll never share. We’re building the version everyone else can use.”

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

#free #video #player #run #smoothly #hes #robots #TechCrunchIoT,Kyber,open source software,physical ai,VLC

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