OpenAI, the AI studio led by Sam Altman, may be on the brink of a potential financial crisis, as noted in a report by Analytics India magazine. According to the report, the company may go bankrupt by the end of 2024.
Reports say OpenAI costs around $700,000 (Rs 5.80 crore) per day to run just one AI service – ChatGPT. Mr. Altman’s OpenAI is burning through cash right now. Despite efforts to monetize GPT-3.5 and GPT-4, the company was not able to generate enough revenue to break even this time around.
After launching in November 2022, ChatGPT became the fastest-growing app in history. But after a record-breaking influx of users in their early stages, the company has seen a gradual decline in user engagement in recent months. Data from SimilarWeb suggests that ChatGPT’s user base has further declined since the end of July.
July 2023 saw a 12 percent drop in user numbers compared to June, from 1.7 billion users to 1.5 billion users, Similar Web data said.
The company’s APIs are also part of the problem. Reports say several companies that previously discouraged their employees from using ChatGPT, have now started gaining access to OpenAI’s API, enabling them to build their own AI chatbots for various workflows.
