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California State University system uses AI as a money incinerator

The California State University (CSU) system spent $17 million to provide ChatGPT access to all students and staff, but sign-ups lagged expectations, prompting the university to commit an additional $39 million to OpenAI. This spending comes as CSU faces a $2.3 billion budget deficit and campus layoffs and cuts.

read1 min views3 publishedAug 24, 2026

The cash-strapped university system spent $17 million to give everyone ChatGPT, watched sign-ups come in far more slowly than expected, and responded by committing another $39 million to it.

As its campuses struggle with layoffs, cuts, and a $2.3 billion budget deficit, the CSU system is dumping money into OpenAI. — Read the rest

The post California State University system uses AI as a money incinerator appeared first on Boing Boing.

source & further reading
boingboing.net — original article Let ChatGPT, Gemini & more fight for your approval—ChatPlayground is just $60 for lifetime access Does AI-assisted writing count as cheating? This essay says the question is backward Anti-AI fonts considered harmful
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