I spent the week thinking about how I could improve my apps — and more importantly, how to avoid the mistakes most companies make when building products like mine.
Then my co-founder messaged me. He asked about our budget.
That’s when it hit me:
I didn’t have a budget.
I didn’t have any other income streams.
And most importantly, I wasn’t keeping costs sustainable.
Later that day, I read a blog about the AI bubble. A thought popped into my head:
“Wait… wouldn’t OpenAI win by default? I mean, they started first.”
Ironically, it was the opposite. OpenAI isn’t untouchable. Despite being first, they’re losing ground in the AI race, while companies like Google AI are doing better.
Why?
I started researching — reading articles, blogs, and books about OpenAI and Google AI. The answer became clear:
A. Google Turns AI Into Big Money Through Its Existing Business
Google doesn’t just sell an AI chatbot. Its AI features improve huge, established revenue engines:
Search ads
YouTube ads
Cloud services (Google Cloud)
Gmail & Workspace subscriptions
AI helps make Search smarter and keeps users on Google longer — which massively boosts ad revenue.
B. Google’s AI Is Part of a Giant Ecosystem
While OpenAI relies heavily on subscriptions and API usage, Google integrates AI across all its products:
Snappy summaries in Search
AI-assisted composing in Gmail
AI-powered Cloud tools
AI upgrades throughout Android
These improvements deepen engagement and indirectly grow revenue across multiple platforms.
C. Profitability vs. Growth Strategy
Google/Alphabet is highly profitable, earning huge profits every quarter from ads and cloud — which it reinvests into AI.
OpenAI is still burning money. Losses are expected for years, and it doesn’t yet have the diversified revenue streams that Google enjoys.
In short:
👉 Google makes money wherever AI adds value.
👉 OpenAI mostly earns from AI subscriptions and APIs.
So even though OpenAI’s revenue is enormous for a startup, it’s still small compared to Google’s multi-hundred-billion-dollar ecosystem, where AI amplifies existing profits.
Lessons to Avoid Falling Like OpenAI
Budget & Revenue Streams — Don’t rely on a single income source. Plan for multiple streams.
Sustainable Costs — Keep expenses in check, even when growing fast.
Diversify Your Product Ecosystem — Like Google, integrate value in multiple areas instead of betting everything on one feature.
Leverage AI Strategically — AI is powerful, but your strategy and systems determine success.
