On Dec 30, 2022 OpenAI launched ChatGPT and only in 5 days, 1 millions of users started to use it. To run ChatGPT it costs $700,000 every day to OpenAI. From last few moths number of users are reducing day by day. So the question comes in picture: Will ChatGPT bankrupt next year?
Will ChatGPT bankrupt next year?
As per the report in Analytics India Magazine the OpenAI might be bankrupt by the end of 2024. In this report there are certain statements which directly indicate that ChatGPT goes bankrupt in 2024. As you know, most startups initially run at a loss. The same is the case with OpenAI. Even the company gets support from Microsoft, but the number of users is decreasing day by day. Since there are multiple alternates in the market against ChatGPT, which has the same features, some of them have more features and those are free, so the subscription model of OpenAI is not accepted by most of the users.
GPT is not the trademark of OpenAI, but now they are trying for this. In June it has been noticed by OpenAI that users are reducing in comparison with May 2023. It may be possible that since company released ChatGPT API for public, so most of the company and users started building there own Chat bots, instead of OpenAI’s ChatGPT. As per Similarweb in July again the users dropped further from 1.7 billion in June to 1.5 billion in July.
Here is the main reasons
- Most of the companies are started using ChatGPT API.
- After participating with Microsoft, Meta LIama2 offers same for free. So most of the users are now started to use LIama2 for free instead of using the paid version of ChatGPT for commercial uses.
- In May 2023, it losses almost double ($540 millions).
- Expert says that if company continues for 10 years of operations and $100 millions in revenue make a successful IPO in the market.
- The OpenAI calculated $200 millions of investment in 2023 and it may be $1 billion in 2024. Microsoft already offered $10 billions to the company. Yet the investment seems not enough till the end of 2024.
- As of now all big amount is paid by Microsoft and few recent investors, but it’s sure that they don’t continue if it doesn’t get profitable soon.
- Apple is also working in it’s own AI powered chat-bot that could challenge ChatGPT.
- Elon Musk disclosed that, the new xAI will be better than Google and OpenAI.
The big companies like Google and Meta are also in this race to develop more futuristic model than ChatGPT. Since Meta is building a TruthGPT which will be better than ChatGPT in many areas. Meta already bought 10000 NVIDIA GPU’s to become best in this race.
Now there will be shortage of GPU’s, which will affect the quality of ChatGPT also.
If OpenAI doesn’t get more funding soon, they might have to declare bankruptcy by the end of 2024. This is because they need funds to buy new NVIDIA GPU’s coming in the second quarter of the year for training their models. During this time, they will also face upcoming competitions, increasing losses, fewer users, more lawsuits, and a drop in quality.
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