ChatGPT Costs Approximately $700,000 Per Day; Maker Might Go Bankrupt By 2024
by upasana sarbajna Business 14 August 2023
The report had noted that despite CEO Sam Altman not owning any equity in OpenAI, the company had shifted from nonprofit to profit long back.
OpenAI spends around $700,000 each day to drive ChatGPT; Microsoft and many other newer investors have been covering these costs from within their own pockets.
However, they could return off the tap if Sam Altman’s company does not generate profit sooner and might as well go bankrupt by the end of 2024, as per the reports published in the Analytics India Magazine.
“Microsoft’s $10 billion investment in OpenAI is possibly keeping the company afloat at the moment. But on the other hand, OpenAI projected an annual revenue of $200 million in 2023, and expects to reach $1 billion in 2024, which seems to be a long shot since the losses are only mounting,” the report mentioned and also noted that in May 2023, losses for OpenAI doubled to $540 million since it started to develop Chat GPT.
The report even noted that despite CEO Sam Altman not owning any equity in OpenAI, the company had shifted from a nonprofit to a profit maker long back.
“It is rather presumptuous of OpenAI to assume that the decline in users is just because people have started using the API to build their own products. Interestingly, the twist over here is the rise of open source LLM models. Meta’s Llama 2, in partnership with Microsoft, is allowing people to use the model for commercial purposes,” Analytics India Magazine further added.