AI's Shifting Landscape: OpenAI's Growth, New Tools, and the Future of Work

The artificial intelligence sector is undergoing significant transformation, marked by the rapid expansion of key players like OpenAI and evolving discussions around AI's impact on education and employment. Recent developments highlight substantial revenue increases for OpenAI, alongside new product introductions and ongoing debates about the future of employment.

OpenAI has achieved remarkable financial success, with annualized revenue reaching approximately $12 billion within the first seven months of the year, a considerable jump from about $5.5 billion in annual recurring revenue for the prior year. This impressive growth stems from its consumer products, ChatGPT business solutions, and its API, less than three years after the launch of the ChatGPT chatbot. The company now serves about 700 million weekly active users across its ChatGPT offerings. This revenue figure excludes licensing from Microsoft and major one-time deals. OpenAI is reportedly aiming for $125 billion in revenue by 2029 and is currently valued at roughly 30 times its present revenue, reflecting strong investor confidence.

In an effort to bolster its educational contributions, OpenAI recently introduced "Study Mode" in ChatGPT. This feature aims to cultivate critical thinking by posing questions and, at times, refraining from direct answers unless users actively engage with the content. Available to most ChatGPT users, with plans to extend to educational subscribers, "Study Mode" seeks to address concerns that AI tools might hinder analytical skills. This initiative aligns with research suggesting that using ChatGPT for writing can lead to reduced brain activity compared to conventional methods. While users can switch to regular mode, OpenAI views "Study Mode" as a foundational step toward making ChatGPT a more effective learning instrument.

Cloud-based platform provider Datadog, Inc. has garnered attention in the AI stock space. An analyst from Stifel maintained a "Hold" rating on the stock with a $135.00 price target, anticipating a strong financial quarter for Datadog, largely due to increased usage by OpenAI. This could account for up to more than 10% of Datadog's revenue, an increase from approximately 6% in the previous quarter, potentially boosting Datadog's overall growth into the upper 20% range. However, Stifel expressed reservations about the longevity of this growth. While a contract renewal in the latter half of the year is hoped for, any new agreement with OpenAI might involve greater price reductions and shifting workloads. A significant portion of OpenAI's work is currently outsourced to Datadog, a dynamic Stifel believes could change if OpenAI brings more work in-house. Stifel suggests that a quicker shift away from this dependency on OpenAI might help investors focus on Datadog's core business. The firm remains cautious on the stock given current valuations, indicating that a more aggressive investment stance would only be considered if core growth accelerates in late 2025 or early 2026, coupled with improved margins.

OpenAI CEO Sam Altman has stirred debate by predicting that AI will entirely eliminate certain job functions, particularly customer support. Speaking at a recent conference, Altman suggested that AI agents could fully automate customer interactions, envisioning a future where AI handles all customer service inquiries instantly and flawlessly. He highlighted examples from companies like Salesforce and ServiceNow, which claim to have automated more than 80% of their internal customer support.

Despite Altman’s assertions, current research presents a more nuanced outlook. A recent study projects an increase in demand for human contact center agents from approximately 15 million in 2025 to over 16 million by 2029, implying that while AI may moderate growth, its immediate threat to human jobs is minimal. Gartner's research also indicates that most service leaders anticipate workforce reductions of 5% or less due to generative AI. Although a Microsoft report identified "customer service reps" as a high-risk job, this threat might materialize over a longer period than Altman implies. Furthermore, studies consistently show a strong preference for human customer service, with more than 80% of customers preferring to wait for a live person over immediate AI interaction. Many human agents also express negative views on customer-facing AI, often dealing with customers frustrated by automated systems. While a completely automated customer service function seems distant for many, the rapid evolution of AI makes predicting the future of employment increasingly complex.