OpenAI, who have created the well-known and widely used ChatGTP; he spends about $700.000 a day just to keep the chatbot running. and the cost does not include other AI products such as GPT-4 and DALL-E2. According to a report, OpenAI and ChatGPT are currently getting ahead thanks to Microsoft's past $10.000 billion funding and it is estimated that they may go bankrupt next year if they don't find a sustainable business model.
Although OpenAI and ChatGPT got off to a rocky start by getting funding from Microsoft for early rights to their results, and with large numbers of signups in their early days, its user base has not stopped decreasing in recent months. According to SimilarWeb, in July 2023 its user base dropped 12% compared to June. It went from 1.700 billion users to 1.500 billion, but this data does not count the users who are using the OpenAI APIs, which would be part of the problem
ChatGPT itself does not appear to be a sustainable model and bankruptcy is possible
According to Analytics India Magazine, there are several open source LLM models that are free to use and can be reused without license issues. This way they can be properly customized and tailored to very specific use case scenarios an organization may have, which lessens the appeal of ChatGPT and GPT-4 in general.
OpenAI has been looking for new and better ways to monetize its GPT-4 LLM. Its losses reached $540 million since the development of ChatGPT. Microsoft's $10.000 billion investment, along with those from venture capital firms; they have kept OpenAI open. But OpenAI's forecast of reaching $200 million in annual revenue by 2023 and aiming for $1.000 billion in 2024 feels more like a pipe dream than utopia. In case OpenAI goes public, could be acquired by a large tech company or conglomerate. This would be an exit strategy for its current investors, but it would have some problems going public.
The vast cost of $700.000 a day for something that many consider a curiosity, and not capable of generating large revenues will make it difficult for any investor to bet on OpenAI. It would be joined by the shortage of enterprise-grade GPUs, which due to the tech war between the US and China, making it difficult to obtain GPUs.
In short, that with mounting financial losses, declining user base, its inability to generate consistent and significant revenue, and declining quality of its flagship product, do not say good things about the future of ChatGPT. Is it possible that OpenAI will declare bankruptcy and close ChatGPT after the impact it has achieved? It's not unreasonable Well, many projects that are pioneers fall because imitators and followers have achieved better business formats..
Source: First Post
