OpenAI could go bankrupt by 2024 as ChatGPT costs over Rs 5 crore to operate everyday
As per a report, OpenAI could go bankrupt by the end of 2024 as ChatGPT is costing the company over Rs 5 crore to operate every day. Microsoft's USD 10 billion investment might have been the reason that the company is still afloat.
In Short
- OpenAI might to bankrupt by 2024.
- The ChatGPT maker is incurring losses.
- The cost of running ChatGPT is over Rs 5 crore per day.
In April this year, reports surfaced that running ChatGPT costs OpenAI a whopping USD 700,000 (Rs 5 crore approx) every day. Not only this, reports had also revealed that Sam Altman's company's losses doubled to USD 540 million ever since the launch of ChatGPT. The viral AI chatbot, that was launched in November 2022, is being widely used across the world but looks like the company behind it isn't in a great position. As per a recent report, OpenAI might even go bankrupt by 2024 due to ChatGPT's mammoth operational expense, and other factors.
OpenAI to go bankrupt by 2024: report
According to Analytics India Magazine, ChatGPT saw a decline in its userbase in June. And the next month, the number of people using ChatGPT dropped even more. While 1.7 billion people were using the viral AI chatbot in June, the numbers declined by 12 per cent in July with 1.5 billion active users. The report then highlights that a user on Twitter (X), says that one of the reasons behind the decline might be 'API cannibalisation'. Most workplaces are prohibiting the use of ChatGPT by their employees. They, however, are using ChatGPT's API to come up with their own LLMs and are encouraging employees to use them.
The report adds that Microsoft's investment of USD 10 billion might be keeping the company going at the moment, but OpenAI is far from reaching its targeted USD 1 billion revenue by the end of 2024. This is because the company's losses are increasing and its money is coming from investors' pockets. Also, OpenAI is hiring for various roles at impressive salaries and is even expanding offices in London, all this contributes towards the operational cost of the company.
As mentioned already, it is costing OpenAI about USD 700,000 to operate every day. And the Analytics India Magazine report says that all of this is coming from Microsoft and other investors' pockets. Thus, if OpenAI doesn't become a profitable company soon, they might go bankrupt eventually.
ChatGPT 5 on the way?
Earlier this month, a Windows Latest report said that OpenAI has applied for a trademark that hints at the upcoming GPT-5. The US trademark application spotted by the publication dates back to July 18, and suggests that OpenAI might be planning to unveil another large language model soon.
"OpenAI has filed a new trademark application with USPTO for 'GPT-5', a 'downloadable computer software for using language model'," says the Windows Latest report.
The report adds that while filing for trademark of GPT-3.5 and GPT-4 too, OpenAI had used similar terms in the application. Both were described as 'downloadable computer software for using language model'. This time, the mention of GPT-5 suggests that OpenAI might be up to creating an even more powerful version of ChatGPT. However, no further details have been divulged and it isn't necessary that OpenAI decides to launch GPT-5 this year.
