Possible to have profitable products in AI world: Thomas Jeng of OpenAI - Business Standard
Summary
Thomas Jeng, Head of Startups at OpenAI, asserted on May 29, 2026, that profitable products are entirely possible within the artificial intelligence landscape, even for startups navigating the challenge of rising token costs, provided they maintain a long-term strategic outlook. Speaking at Mumbai Tech Week, Jeng observed that many companies are successfully achieving solid gross margins by embedding AI directly into the core of their product offerings. He underscored that the path to product profitability is contingent upon the founders' core thesis, the specific construction of their product, and their overarching business strategy. OpenAI, he noted, actively supports companies in establishing more sustainable economic frameworks. This insight arrives amidst a significant acceleration in India's adoption of OpenAI's Codex and general AI workflows.
Key takeaway
For startup founders or AI product managers concerned about the viability of AI-driven ventures, Thomas Jeng's insights suggest that profitability is within reach. You should prioritize a clear founder's thesis and a robust product construction strategy, integrating AI at the core to achieve solid gross margins. Don't let rising token costs deter your long-term vision; instead, focus on sustainable economic models, potentially leveraging support from organizations like OpenAI.
Key insights
Profitable AI products are attainable for startups despite rising token costs with strategic planning.
Principles
- Profitability depends on founder thesis and product strategy.
- AI integration can yield solid gross margins.
- Long-term view mitigates token cost concerns.
Method
OpenAI assists companies in constructing products and business strategies to achieve sustainable economics and profitability.
In practice
- Focus on core AI integration for margin growth.
- Develop a clear founder thesis and product strategy.
- Explore OpenAI's support for economic sustainability.
Topics
- OpenAI
- AI Startups
- Product Profitability
- Token Costs
- AI Workflows
- Codex
Best for: Entrepreneur, Director of AI/ML, Investor
Related on AIssential
Editorial summary, takeaway, and curation by AIssential. Original article published by artifical intelligence via Google News.