According to a report by Analytics India Magazine, OpenAI, the AI company run by Sam Altman, may be on the verge of a financial disaster. The corporation could file for bankruptcy by the end of 2024, according to the article.
According to the study, running only one of OpenAI’s AI services, ChatGPT costs the company nearly $700,000 (about Rs. 5.80 crore) per day. Currently, Mr. Altman’s OpenAI is depleting its financial resources. Despite efforts to monetize GPT-3.5 and GPT-4, the business is currently unable to make enough money to break even. (Also Read: Unlock Your Future With OpenAI: Lucrative Opportunities Offer Chances To Earn Up To Rs 3.7 Crore Annually)
After its November 2022 launch, ChatGPT rose to the position of app with the highest rate of growth in history. However, following a record-breaking surge of users in the beginning, the business has noticed a slow fall in user engagement in subsequent months. (Also Read: Gautam Adani’s Superb Luxury Car Collection Makes Heads Turn)
According to data from SimilarWeb, ChatGPT’s user base continued to decline at the end of July. According to data from SimilarWeb, the number of users fell by 12 percent in July 2023 compared to June, from 1.7 billion to 1.5 billion.
The company’s APIs also contribute to the issue. According to the article, some businesses who had previously prohibited staff from using ChatGPT have started gaining access to OpenAI’s APIs, allowing them to develop custom AI chatbots for a variety of workflows.
The issue is highlighted in the report from Analytics India Magazine. There are a number of open-source LLM models that may be freely used and modified without running afoul of any licencing restrictions, according to the article. They can therefore be adequately tailored and adjusted to any unique use case scenarios that a business may have.
The article gave the example of Microsoft and Meta’s Llama 2 allowing users to use the model for business purposes. So why wouldn’t people choose an easily customizable Llama 2 instead of what OpenAI offers, which is a premium, proprietary, and restricted version? Comparing it to GPT, it might also be argued to be much superior in some use scenarios. That has already taken place.
According to the report, OpenAI is not yet lucrative. Since it began creating ChatGPT, its losses have risen to $540 million as of May. OpenAI may now be kept afloat by Microsoft’s $10 billion investment in the company.
On the other side, the study added that OpenAI forecasted annual income of $200 million in 2023 and intends to reach $1 billion in 2024, which appears to be a long shot given the rising losses.