Can Artificial Intelligence Keep Up with Its Own Hype?

AI-generated, human-reviewed.

OpenAI’s ChatGPT has reached 800 million active weekly users, making it the fastest-growing consumer app ever. However, on This Week in Tech (TWiT), host Leo Laporte and guests Gary Rivlin, Jennifer Pattison Tuohy, and Cathy Gellis point out that behind the dazzling user numbers, there are critical questions about whether OpenAI’s business model, and the rapid rise of AI in general, can actually be sustained.

OpenAI’s Explosive User Growth and Skyrocketing Valuation

According to Gary Rivlin, OpenAI is now valued at half a trillion dollars, with reported annual revenues of $12–14 billion. Its main product, ChatGPT, drives much of this success, attracting hundreds of millions of users, many of whom use the service for free. Despite these eye-popping figures, most of OpenAI’s funding has come from huge capital raises, over $60 billion so far, rather than profits.

The catch? Even with a large number of paying users, the costs of running these AI models (including the hardware, electricity, and licensing the vast amounts of data needed to train them) are immense. OpenAI is reportedly spending more than it brings in, raising questions about whether growth is truly sustainable without further massive investment or fundamental changes to the business.

The Energy and Environmental Cost of Scaling Artificial Intelligence

A major concern raised on the show is the enormous energy demand of today’s AI systems. Modern AI, including OpenAI’s models, runs on dense data centers filled with power-hungry GPUs. Studies estimate that AI already accounts for about 1% of U.S. energy consumption, a number that is only expected to rise.

Jennifer Pattison Tuohy highlighted the environmental trade-offs, especially as AI expansion collides with political decisions to slow renewable energy projects in the U.S. For instance, the Trump administration paused new wind and solar subsidies, just as Big Tech is building more data centers and reviving old fossil-fuel power plants. This could lead to both higher consumer energy bills and increased carbon emissions.

Who Pays for AI’s Growth?

OpenAI and similar companies face relentless pressure to recoup their investments. Jennifer Tuohy notes that advertising is one path forward; rumors abound that OpenAI will begin inserting ads into its interfaces. However, as Leo Laporte points out, paid deals with media and content companies (such as Anthropic spending $1.5B on licensed data) further add to costs—and may drive more reliance on advertising.

Meanwhile, as AI companies run low on available public internet data, a new cottage industry of training data deals is emerging. This could escalate the cost of developing ever-bigger models, especially as rights-holders and creators demand compensation for their material.

What Does AI’s Rapid Growth Mean for Everyday Users?

• In the short term, users enjoy increasingly powerful AI tools, often for free or at low cost, benefiting everything from coding help to creative video generation.
• Long term, the sustainability of these services depends on their ability to profit. If costs stay high and user growth plateaus, companies may restrict free access, add fees, or shift toward more invasive advertising.
• The environmental impact is a growing concern: continued AI growth could result in greater greenhouse gas emissions and put stress on the grid, unless the industry and policymakers find solutions using more renewable energy or more efficient hardware.

Key Takeaways

• OpenAI’s growth is historic but comes with major financial and environmental costs.
• The company spends more than it earns, with profitability dependent on further investment or new revenue streams.
• AI’s energy use is soaring, just as U.S. renewable energy projects are stalling.
• Expect more advertising and paid licensing deals as companies seek to offset costs.
• The very future of free or low-cost AI tools may hinge on solving these sustainability issues.

As discussed on This Week in Tech, OpenAI’s meteoric rise highlights both the promise and peril of today’s artificial intelligence revolution. While users currently enjoy unprecedented access to powerful tools, the industry faces mounting questions about whether this pace of innovation and adoption is truly sustainable—financially or environmentally. Keeping these tools affordable, responsible, and widely available will require major advances in efficiency, continued investment, and thoughtful policy choices in the years ahead.

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