OpenAI likely to go bankrupt by the end of 2024: Report
OpenAI, the AI research organization that created the popular chatbot ChatGPT, is facing a serious financial crisis that could lead to its bankruptcy by the end of 2024, according to a report by Analytics India Magazine. The report claims that OpenAI is spending a staggering $700,000 per day to keep ChatGPT running, and that its revenue is not enough to cover its costs.
ChatGPT is a conversational AI system that can generate realistic and coherent text responses based on user inputs. It was launched in November 2022 and quickly became the fastest-growing consumer app in history, reaching 100 million monthly active users within two months⁷. However, ChatGPT also requires a huge amount of computing power to operate, which translates into high operational expenses for OpenAI.
According to Dylan Patel, chief analyst at consulting firm SemiAnalysis, ChatGPT could cost OpenAI around $700,000 per day to use, given the costs involved with computing power¹. This figure does not include the costs of developing and maintaining other AI projects, such as GPT-4 and DALL-E2, which are also based on large-scale neural networks.
OpenAI's revenue, on the other hand, is projected to reach $200 million in 2023 and $1 billion in 2024, according to Reuters⁷. However, this may not be enough to sustain its ambitious vision of creating artificial general intelligence (AGI), which is AI that can perform any task that a human can do. OpenAI's CEO Sam Altman has reportedly suggested that the organization may need to raise around $100 billion in the coming years to achieve this goal¹.
The report by Analytics India Magazine also cites other challenges that OpenAI is facing, such as declining user engagement, regulatory scrutiny, ethical concerns, and competition from other AI players. The report warns that if OpenAI does not find a way to reduce its costs or increase its revenue, it may run out of cash by the end of 2024 and go bankrupt.
OpenAI was founded in 2015 by a group of prominent tech entrepreneurs and researchers, including Elon Musk, Sam Altman, Greg Brockman, Ilya Sutskever, and others. The organization's mission was to ensure that AGI benefits all of humanity and does not pose any existential risks. In 2019, OpenAI transitioned from a non-profit to a for-profit entity, with the aim of attracting more funding and talent⁷.
OpenAI has been at the forefront of AI research and innovation, with several groundbreaking achievements that have significantly influenced the field. Some of its notable accomplishments include:
- ChatGPT: The most advanced conversational AI system to date, capable of generating
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FAQ's
Who created ChatGPT?
OpenAI
ChatGPT was created by OpenAI, an AI research company. It started as a nonprofit company in 2015 but became for-profit in 2019. Its CEO is Sam Altman, who also co-founded the company.
What is the valuation of OpenAI?
1 on Disruptor 50 list with $30 billion valuation and 200 million users. CNBC's Julia Boorstin reports on this year's annual Disruptor 50 list, which highlights the 50 top companies disrupting markets.
ओपन एआई का वैल्यूएशन क्या है?
$30 बिलियन मूल्यांकन और 200 मिलियन उपयोगकर्ताओं के साथ डिसरप्टर 50 सूची में प्रथम स्थान पर। सीएनबीसी की जूलिया बरस्टिन ने इस साल की वार्षिक डिसरप्टर 50 सूची पर रिपोर्ट दी है, जिसमें बाजारों में हलचल मचाने वाली 50 शीर्ष कंपनियों पर प्रकाश डाला गया है।
Can I invest in OpenAI?
OpenAI is not listed on any stock exchange, so you cannot buy OpenAI stocks directly. Instead, you can invest in some of its shareholders and partners to gain exposure to the company and the AI sector.
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