"This report set out to investigate and elucidate the business models behind the generative AI companies that are drawing hundreds of billions of dollars in investment. Such models have pushed companies like Nvidia, which supplies the chips necessary for AI computation, to double and then triple its $418 billion valuation in 2022 to a historic market capitalization in excess of $3 trillion in 2024.4 It soon became clear that understanding the composition of those business models meant understanding the deployment and evolution of the concept of “AGI” as a lodestar for generative AI companies.
Any effort to understand OpenAI’s business model and that of its emulators, peers, and competitors must thus begin with the understanding that they have been developed rapidly, even haphazardly, and out of necessity, to capitalize on the popularity of generative AI products, to fund growing compute costs, and to pacify a growing portfolio of investors and stakeholders. Equally crucial is understanding how “AGI” operates in a material context, and how it serves as a driver of continued investment and enterprise sales, a marketing and recruitment tool, and a framework for bolstering the company’s influence and cultural footprint.
That OpenAI had no discernible business model upon its inception does not mean that profit potential wasn’t a consideration from the beginning. While the headlines announcing OpenAI’s launch reliably painted the project as Elon Musk and Sam Altman’s humanitarian effort to protect the world from a malignant, superpowerful AI, it was from the start a densely corporatized undertaking, established in a posh hotel in the middle of Silicon Valley with seed money from tech billionaires, Amazon, and top venture capitalists—despite being labeled a “nonprofit.”"
https://ainowinstitute.org/general/ai-generated-business