ChatGPT maker may go bankrupt in 2024.OpenAI, the AI studio run by Sam Altman, may be on the verge of a financial disaster. According to the estimate, the corporation might go bankrupt by the end of 2024.
According to the study, it costs OpenAI $700,000 (Rs 5.80 crore) per day to run just one of its AI services, ChatGPT. Mr. Altman’s OpenAI is currently depleting funds.
Despite efforts to monetize GPT-3.5 and GPT-4, the company is currently unable to earn enough income to break even.
As ChatGPT maker may go bankrupt in 2024, after its launch in November 2022, ChatGPT became the fastest-growing app in history.
However, following a record-breaking flood of users in the early phases, the company has seen a slow fall in user engagement in subsequent months.
Also read: Who is Sam Altman? The OpenAI boss and ChatGPT guru
According to SimilarWeb data, the user base of ChatGPT had plummeted even further by the end of July.
According to SimilarWeb data, the user base fell by 12% in July 2023 compared to June, falling from 1.7 billion to 1.5 billion.
The APIs provided by the corporation are also a source of concern.
According to the article, numerous firms that previously prohibited their staff from using ChatGPT have recently begun to gain access to OpenAI’s APIs, allowing them to construct their own AI chatbots for a variety of workflows.
The report from Analytics India Magazine emphasizes the issue. According to the article, there are various open-source LLM models that are free to use and may be repurposed without any licensing difficulties.
As a result, they may be adequately customized and modified to specific use case scenarios that a company may have.
According to the source, Meta‘s Llama 2, in collaboration with Microsoft, is allowing users to use the model for commercial purposes.
So, rather than opting for OpenAI’s pricey, proprietary, and limited version, why would users not go for an easily customizable Llama 2? It is also perhaps superior in some usage cases when compared to GPT. That is already taking place.
According to the report, OpenAI is not yet lucrative. Since it began developing ChatGPT in May, its losses have more than doubled to $540 million.
Microsoft’s $10 billion investment in OpenAI may be keeping the company viable for the time being.
However, OpenAI forecast an annual revenue of $200 million in 2023 and intends to reach $1 billion in 2024, which appears to be a distant shot given the report’s findings.
