Report: ChatGPT's maker may go for bankruptcy in 2024 at a cost of Rs. 5.80 crore each day

 Report: ChatGPT's maker may go for bankruptcy in 2024 at a cost of Rs. 5.80 crore each day

According to the study, running only one of OpenAI's AI services, ChatGPT, costs the company nearly $700,000 (about Rs. 5.80 crore) every day.

According to a report by Analytics India Magazine, OpenAI, the AI company run by Sam Altman, may be on the verge of a financial disaster. The corporation might file for bankruptcy by the end of 2024, according to the article.

According to the study, running only one of OpenAI's AI services, ChatGPT, costs the company nearly $700,000 (about Rs. 5.80 crore) every day. Currently, Mr. Altman's OpenAI is depleting its financial resources. Despite efforts to monetize GPT-3.5 and GPT-4, At this time, the business is unable to make enough money to break even.

After its November 2022 launch, ChatGPT rose to the position of app with the highest rate of growth in history. However, following a record-breaking surge of users in the beginning, the business has noticed a slow fall in user engagement in subsequent months. According to data from SimilarWeb, ChatGPT's user base continued to decline at the end of July.

According to data from SimilarWeb, the number of users fell by 12% in July 2023 compared to June, from 1.7 billion to 1.5 billion.

The company's APIs also contribute to the issue. According to the article, several businesses who had previously prohibited staff from using ChatGPT have started gaining access to OpenAI's APIs, allowing them to develop custom AI chatbots for a variety of processes.

The issue is highlighted in the report from Analytics India Magazine. There are a number of open-source LLM models that may be freely used and modified without running afoul of any licencing restrictions, according to the article. They may therefore be adequately tailored and adjusted to any unique use case situations that a business may have.

The article gave the example of Microsoft and Meta's Llama 2 allowing users to utilise the concept for business reasons. So why wouldn't people choose a readily customizable Llama 2 instead of what OpenAI offers, which is a premium, proprietary, and restricted version? Comparing it to GPT, it may also be argued to be much superior in some use scenarios. That has already taken place.

According to the report, OpenAI is not yet lucrative. Since it began creating ChatGPT, its losses have risen to $540 million as of May. OpenAI may now be kept afloat by Microsoft's $10 billion investment in the firm. On the other hand, OpenAI anticipated $200 million in yearly income in 2023 and hopes to reach $1 billion in 2024, which appears unlikely given that the losses are continuing to grow, according to the article.