"The value of AI leader OpenAI jumped to $500 billion based on stock sales by employees that total $6.6 billion. That makes OpenAI more valuable than oil giant Exxon Mobil Corp. ( NYSE: XOM), which is one of the most valuable companies in the world. However, one key difference is that OpenAI's revenue this year is expected to be $16 billion, while its losses are expected to exceed $8 billion."
"Tesla and OpenAI are among a select group of companies expected to grow at extraordinary rates over the next decade. The two future-focused companies have a major challenge. One is how they fund growth. OpenAI is expected to lose $115 billion through 2029. Tesla will invest heavily in its new self-driving technology, artificial intelligence (AI) advances, and robotics business. While Tesla generates small revenue from its self-driving software, it makes no money from its latest programs."
OpenAI's valuation rose to $500 billion after employee stock sales totaling $6.6 billion, surpassing Exxon Mobil despite vastly lower revenue and higher losses. OpenAI is expected to earn $16 billion this year while losing over $8 billion, and is projected to lose $115 billion through 2029. Tesla's market cap vastly exceeds Ford's, driven by investor belief in future growth from self-driving, AI, and robotics. Legacy firms Exxon and Ford report far larger current revenues and profits but face slower growth prospects. Both OpenAI and Tesla face major funding and profitability challenges as they scale future-focused technologies.
Read at 24/7 Wall St.
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