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ChatGPT’s Developer Company OpenAI May Go Bankrupt In 2024: Report

OpenAI may go bankrupt by the end of 2024 as ChatGPT's user base has dropped in the last two months and it is costing OpenAI $700,000 (Rs 5.80 crore) daily to operate ChatGPT.

Published: August 13, 2023 7:27 PM IST

By Tahir Qureshi

ChatGPT, OpenAI, Bankrupt, 2024, Analytics India Magazine, Microsoft, GPT-3.5, GPT-4, ChatGPT Plus, American, artificial intelligence, AI
ChatGPT was released as a freely available research preview. (File)

OpenAI May Go Bankrupt In 2024: According to a claim made by Analytics India Magazine, OpenAI may go bankrupt by the end of 2024 as ChatGPT’s user base has dropped in the last two months and it is costing OpenAI $700,000 (Rs 5.80 crore) daily to operate ChatGPT. This is being covered by Microsoft and other investors which could eventually be drained if OpenAI doesn’t become profitable soon, added the claim.

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It further states that OpenAI is rapidly reducing its financial resources and even after launching paid services for GPT-3.5 and GPT-4, the company is unable to generate enough revenue to cover its costs.

Microsoft Investment

According to the report, the company is probably surviving only because of Microsoft’s investment of $10 billion, i.e., about Rs 83,000 crore in OpenAI. OpenAI has estimated an annual revenue of $ 200 million in 2023, or about Rs 1660 crore. In 2024, the revenue is expected to reach $ 1 billion, i.e., around Rs 8200 crores.

However, it doesn’t seem possible to reach this revenue in the current situation of the company.

OpenAI Losses Go Up

OpenAI launched ChatGPT in November 2022. Since then till May 2023, the company has incurred a loss of $540 million, i.e., around Rs 4479 crore. At the same time, a decline is also being seen in the number of users of ChatGPT. ChatGPT users have seen a 12% decline in July 2023 as compared to June. There were 1.7 billion users in July which has come down to 1.5 billion.

What Kind Of Questions Can ChatGPT Answer

You can ask any question from it. That is, from writing an email to a CV, you can get it made. ChatGPT also gives the answer to Reel or how to make your video viral. ChatGPT also gives you suggestions on daily chores.

ChatGpt Has Limitations

  • Lack of common sense in answering the questions.
  • Reference is not given while answering the question.
  • Not able to analyze emotional situations.
  • It cannot understand the context of a given situation.

About ChatGPT

ChatGPT is a large language model-based chatbot developed by OpenAI. It was launched on November 30, 2022. It is notable for enabling users to refine and steer a conversation towards a desired length, format, style, level of detail, and language used. Successive prompts and replies, known as prompt engineering, are taken into account at each stage of the conversation as a context.

ChatGPT is built upon GPT-3.5 and GPT-4—members of OpenAI’s proprietary generative pre-trained transformer series of transformer models—which are then fine-tuned for conversational applications using a combination of supervised and reinforcement learning techniques.

ChatGPT was released as a freely available research preview, but due to its popularity, OpenAI now operates the service on a freemium model. It allows users on its free tier to access the GPT-3.5 based version, while the more advanced GPT-4 based version, as well as priority access to newer features, are provided to paid subscribers under the commercial name “ChatGPT Plus”.

About OpenAI

Founded in 2015, OpenAI is an American artificial intelligence (AI) research laboratory consisting of the non-profit OpenAI, Inc. and its for-profit subsidiary corporation OpenAI, L.P. OpenAI conducts research on artificial intelligence with the declared intention of developing “safe and beneficial” artificial general intelligence, which it defines as “highly autonomous systems that outperform humans at most economically valuable work”.

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