# California State University system uses AI as a money incinerator

> Source: <https://boingboing.net/2026/08/24/cal-state-chatgpt-ai-millions.html>
> Published: 2026-08-24 17:13:47+00:00

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 ](https://boingboing.net/2026/08/24/cal-state-chatgpt-ai-millions.html)

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