In April of this year, reports surfaced that running ChatGPT was costing OpenAI $700,000 (about Rs 5 crore) per day. Furthermore, reports have also emerged that Sam Altman's company losses have doubled to $540 million since the launch of ChatGPT. The viral AI chatbot, launched in November 2022, is widely used around the world, but it seems the company behind it is not in a very good position. According to a recent report, OpenAI may even go bankrupt in 2024 due to ChatGPT's huge operating costs and other factors.
OpenAI will go bankrupt in 2024:
report
According to Analytics India Magazine, ChatGPT saw its user base shrink in June. And the following month, the number of people using ChatGPT dropped again. While 1.7 billion people used the viral AI chatbot in June, that number dropped 12% in July with 1.5 billion active users. The report goes on to point out that one Twitter user (X) claimed that one of the reasons for the drop could be due to "API cannibalism". Most workplaces prohibit their employees from using ChatGPT. However, they use the ChatGPT API to create their own LLM and encourage employees to use them. The report adds that Microsoft's $10 billion investment can keep the company afloat for the time being, but OpenAI is far behind its $1 billion revenue target by the end of 2024. Indeed, the company's losses are increasing and their money is coming from the pockets of investors. In addition, OpenAI is hiring for a variety of positions with impressive salaries and even expanding an office in London, all of which contribute to the company's operating costs.
As mentioned earlier, OpenAI costs around $700,000 to run per day. And the Analytics Journal India report says it all comes from the pockets of Microsoft and other investors. So if OpenAI doesn't quickly become a profitable business, it could eventually go bankrupt.
Earlier this month, the latest report from Windows indicated that OpenAI had filed a trademark application hinting at the upcoming GPT-5. The US trademark application discovered by the publication dates from July 18 and suggests that OpenAI may be planning to announce another mainstream language model soon.
"OpenAI has filed a new trademark application with the USPTO for 'GPT-5', a 'downloadable computer software to use the language model'," the latest Windows report said.
The report adds that when filing for trademarks GPT-3.5 and GPT-4, OpenAI used similar terms in the application. Both are described as "downloadable computer software to use the language model". This time, the mention of GPT-5 shows that OpenAI can create an even more powerful version of ChatGPT. However, no other details have been revealed and OpenAI doesn't need to decide to release GPT-5 this year.
