OpenAI Likely To Go Bankrupt By End Of 2024: Report

OpenAI, the AI studio that started the AI revolution among common people without technical backgrounds, is experiencing severe hurdles. According to recent research, OpenAI may potentially become bankrupt by 2024 as a result of ChatGPT's massive operational costs and other variables.

The cost of running ChatGPT was estimated by sources to be USD 700,000 (approx Rs 5 crore) each day in April of this year. Not only that but since the introduction of ChatGPT, reports had also indicated that Sam Altman's company's losses had doubled to USD 540 million. However, OpenAI and ChatGPT initially had a strong launch with a record-breaking influx of users in their early phases, they have since noticed a slow fall in user engagement.

ChatGPT's user base decreased in June, according to Analytics India Magazine. The popular AI chatbot had 1.7 billion users in June, but that number dropped to 1.5 billion in July, a 12% fall. Most workplaces forbid their employees from using ChatGPT. However, they are developing their own LLMs and urging staff to utilise them utilising the ChatGPT API.

According to the report, although Microsoft's USD 10 billion investment may be keeping the business afloat at the time, OpenAI will fall far short of its goal of USD 1 billion in income by the end of 2024. This is due to the company's growing losses and the fact that its funding comes from investor pockets. Additionally, OpenAI is expanding its headquarters in London and hiring for a variety of positions at outstanding wages; all of this adds to the business's operating expenses.

According to a report by Analytics India Magazine, Microsoft and other investors are paying for everything. Therefore, OpenAI may eventually file for bankruptcy if they don't start turning a profit soon.