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.

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 The post California State University system uses AI as a money incinerator https://boingboing.net/2026/08/24/cal-state-chatgpt-ai-millions.html appeared first on Boing Boing https://boingboing.net .