WhatsApp Group Join Now
Telegram Group Join Now
Medium Join Now

Is OpenAI Going Broke? ChatGPT’s Daily Price Tag Raises Alarms !

OpenAI, the brainchild of Sam Altman, might be facing financial turbulence, as highlighted in a report by Analytics India Magazine. The warning bell is that the company could be in danger of going bankrupt by the close of 2024.

The crunching numbers reveal that running just one of OpenAI’s AI services, ChatGPT, is draining about $700,000 (approximately ₹5.80 crore) from their coffers daily. Despite attempts to monetize GPT-3.5 and GPT-4, the financial scales are still tilted unfavorably. Profits aren’t matching expenditures.

Open AI

ChatGPT, which zoomed to the top of the popularity charts since its launch in November 2022, seems to be losing its sparkle. A mammoth initial user influx was followed by a steady decline in recent months. According to SimilarWeb’s data, the user base saw a 12 percent dip from June to July 2023, dwindling from 1.7 billion to 1.5 billion users.

The company’s APIs are also posing a challenge. Employees, who were earlier discouraged from using ChatGPT, are now accessing OpenAI’s APIs to create their personalized AI chatbots for diverse tasks.

Analytics India Magazine’s report underscores the point. It emphasizes that various open-source LLM models are both free and open for repurposing. Organizations can adapt these models to their specific use cases without worrying about licensing constraints.

For instance, Meta’s Llama 2, in partnership with Microsoft, offers a customizable option for commercial use. This competition raises questions about why companies would opt for OpenAI’s paid, proprietary version when an adaptable Llama 2 is on the horizon, potentially outshining GPT in some areas.

The report confirms that OpenAI isn’t making profits yet. Although Microsoft’s $10 billion investment is providing a lifeline, OpenAI’s losses have doubled to $540 million since the inception of ChatGPT. Despite projecting $200 million in revenue for 2023 and aiming for $1 billion in 2024, the financial reality seems distant, considering the mounting losses.”

OpenAI’s financial crisis looms large as ChatGPT’s daily cost skyrockets to ₹5.80 crore. Will the AI giant survive the escalating expenses? Get the inside scoop on the possible bankruptcy threat in this report.”

Leave a comment