OpenAI Isn't A SaaS Company. It's a Utility
OpenAI has vast capex needs, which SaaS companies don't
Most investors, and most commentators, have misunderstood OpenAI. They see a cutting-edge AI company with SaaS-like recurring revenue, exponential user growth, and a sticky developer platform. In short, they think it’s the next Snowflake or Salesforce. That’s a mistake.
In reality, OpenAI increasingly resembles a capital-intensive infrastructure utility.…