OpenAI Could Face Bankruptcy in 2021: Report
According to media reports, OpenAI is likely to go bankrupt by the end of 2024 if it doesn’t get more funding soon. Analytics India Magazine reports that ChatGPT has seen a steady decline in users in the first six months of the year.
The number of users decreased to 1.5 billion in July from 1.7 billion in June and 1.9 billion in May, analytics company LikeWeb revealed. This also does not include APIs or the ChatGPT mobile app.
While one theory claims that students were out of school in May, another claims that people started building their own bots instead of the original offering. “I’m no longer allowed to use ChatGPT at work, but we’ve developed our own internal model based on ChatGPT,” the user said in a tweet.
Another problem is that since OpenAI developed ChatGPT, which has caused an uproar in the job market over fears it could replace human creativity, its losses have doubled to about $540 million last year, according to a May report by The Information.
This is despite ChatGPT reportedly paying a whopping $700,000 (Rs 5.80 crore) per day. Even OpenAI CEO Sam Altman had admitted in a tweet that “the cost of computing is eye-watering.”
A recent report by Investopedia claimed that it is too early for any of the leading artificial intelligence companies like AI, Anthropic or Inflection to target the initial public offering (IPO) market.
“That’s because a successful IPO requires at least 10 years of operations and $100 million in revenue,” the report said.
In addition, billionaire Elon Musk is adding to the pressure, claiming to build a competing chatbot.
Although Microsoft-backed OpenAI has estimated annual revenue of $200 million in 2023 and aims to reach $1 billion in 2024, its losses are mounting. It survives mainly on Microsoft’s $10 billion investment.
