OpenAI spends Rs.5.80 crore to run ChatGPT daily, Report says it many go Bankrupt in 2024
OpenAI, a company that creates smart computer programs, might be facing a big money problem. A report from a magazine in India called Analytics India Magazine talks about this issue. The report says that OpenAI might run out of money and not be able to pay its bills by the end of 2024.
The report explains that OpenAI spends a lot of money every day, around $700,000 (Rs.5.80 crore), to run just one of its computer programs, like ChatGPT. The person in charge of OpenAI, Sam Altman, is spending more money than the company is making right now.
Even though OpenAI tried to make money from their computer programs, they’re not getting enough money to cover their costs. They made ChatGPT, which got really popular after it started in November 2022. But after a lot of people used it at first, not as many people are using it now. A company that tracks these things, SimilarWeb, says that the number of people using ChatGPT went down in July 2023.
In July 2023, the number of people using ChatGPT went down by 12% compared to June. It dropped from 1.7 billion people to 1.5 billion people, according to SimilarWeb.
There’s another problem with OpenAI’s computer programs. Some companies used to tell their workers not to use ChatGPT, but now those companies are using OpenAI’s tools to make their own computer programs. These programs do similar things as ChatGPT but are more flexible and can be changed to fit different needs.
The report from Analytics India Magazine talks about this problem. They say that there are other computer programs available for free that can be used and changed without any problems. These programs can be adjusted to fit specific needs of different companies.
For example, Meta’s Llama 2, made together with Microsoft, can be used by people for business reasons. So, instead of using what OpenAI offers, which costs money and has limitations, people might choose to use a program like Llama 2 that can be easily changed. In some cases, Llama 2 might even work better than OpenAI’s programs. This is already starting to happen.
The report says that OpenAI is not making a profit yet. Since they started making ChatGPT, they have lost a lot of money, about $540 million. Right now, the money that Microsoft invested, $10 billion, is helping OpenAI stay afloat. But at the same time, OpenAI hoped to make $200 million in 2023 and $1 billion in 2024. This seems unlikely because they are losing more money than they are making, as the report says.
