ChatGPT is being used by fewer and fewer people, and the creators of the tool are paying huge amounts of money to provide the service to Internet users. The costs of OpenAI are so high that the company is in danger of bankruptcy.
ChatGPT continues to be the most popular AI chatbot, but how long will its reign last? The latest data shows that the company responsible for the service, OpenAI, is struggling with huge costs that could end in tragedy for the company.
Will ChatGPT developers go bankrupt? The cost of OpenAI is huge
A recent report from Analytics India Magazine shows that OpenAI is spending a phenomenal $700,000 every day to keep its ChatGPT service running for Internet users. At the same time, the company earns trace profits. Attempts to sell premium subscriptions to chatbot services have been unsuccessful.
In May 2023, the company publicly acknowledged that it was far from making a profit from its operations. The company then confirmed that since the inception of ChatGPT, it has doubled its negative record and has already taken a total loss of $540 million.
Moreover, the chatbot itself is simply losing its popularity. The app has seen a healthy uptrend since November 2022. In December, 300 million people played it, and in February 2023, interest exceeded 1.1 billion Internet users. May was a record, with chatbot usage at 1.9 billion users. Unfortunately, June brought a decline to 1.7 billion and July to 1.5 billion chats.
As journalists conclude, the current circumstances can quickly lead OpenAI to bankruptcy.
OpenAI has competitors - does Altman hold the reins of the company?
OpenAI defends itself against accusations of declining popularity. The company suggests that the weaker results are due to the release of the API tool for developers. Thanks to them, independent developers and companies can develop their own chatbots like ChatGPT. This is beneficial for the creators of the original tool, but these figures are not included in the overall statistics.
However, there is another problem here. There are already many API providers for AI and new solutions are still being developed. The competition in the market is getting tighter, and it is unclear whether ChatGPT will continue to be the market leader in this aspect as well. For example, the AI Llama 2 model (a collaboration between Meta and Microsoft) allows companies to use the tool for free, even for commercial purposes. OpenAI will be hard-pressed to beat the $0 offer.
Another problem is the conflict between the majority of OpenAI employees and the company’s co-founder Sam Altman. The manager is quite recognizable on the Web and is known for very cautious statements about AI, highlighting the many risks associated with the development of artificial intelligence. According to many employees, Altman’s loud statements repeatedly deal a blow to the interests of the company he runs.
Source: Wprost
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