New Delhi: OpenAI, the maker of ChatGPT, may go bankrupt by the end of 2024 if it doesn’t get more funding soon, according to media reports.
In the first six months of the year, the ChatGPT website has seen a continuous user decline, Analytics India Magazine reported.
According to revealed data from analytics company SimilarWeb, the users declined to 1.5 billion in July from 1.7 billion in June and 1.9 billion in May. This also doesn’t include APIs or the ChatGPT mobile app.
One theory holds that in May, students were out of school; the other says that people started building their own bots instead of using the original offering.
One user tweeted, “I am no longer allowed to use ChatGPT at work, but we have developed our own internal model based on ChatGPT.”
In May, The Information reported that after OpenAI developed ChatGPT, which has created a ruckus in the job market over fears that it may replace human creativity, its losses doubled to around $540 million last year.
This comes even as ChatGPT reportedly costs a whopping $700,000 (Rs 5.80 crore) per day to operate.
Even Sam Altman, OpenAI CEO, had admitted in a tweet that “compute costs are eye-watering”.
Investopedia’s recent report claimed that it is too early for any AI-leading company, like OpenAI, Inflection or Anthropic, to head into the initial public offering (IPO) market.
“It is because it takes at least 10 years of operation and $100 million in revenue for an IPO to be successful,” the report said.
Additionally, billionaire Elon Musk is increasing pressure with claims to build a rival chatbot.
In 2023, Microsoft-backed OpenAI has projected an annual revenue of $200 million and aims to reach $1 billion in 2024; its losses are mounting. It is majorly surviving on Microsoft’s $10 billion investment.