New Report Warns of $5 Billion In Losses For OpenAI In 2024

Expert Verified By

OpenAI May Run Itself Into The Ground!

Story Highlight
  • OpenAI is not in the best position despite ChatGPT’s success.
  • It is said that operating ChatGPT requires $700K/day.
  • The company has already spent $8.5 billion.

ChatGPT’s launch changed the way people perceived technology. Within a few weeks, tens of millions worldwide were using this chatbot due to its immense popularity.

However, we did not know that the costs of training the AI models and running the servers that host them are so high. There have been five billion euros in losses due to the significant expenses.

Why it matters: The company’s work on ChatGPT has received global praise, with some entrepreneurs even comparing it to the impact of Apple’s original iPhone.

OpenAI
ChatGPT Is Still A Huge Deal

As reported by The Information, OpenAI may be headed toward a terrible fate despite its recent success. The estimated figures come from data obtained through numerous industry figures and confidential internal financial accounts.

Since it was founded in 2015, OpenAI has expanded both in terms of size and reach thanks to several investments, with Microsoft contributing billions of dollars to the AI company over time.

The company has always been improving, thanks to numerous projects, such as the latest ChatGPT-4o mini. Therefore, it has to cover the cost of these models. In addition, it gives wages come out to around $800,000 annually.

It is now known that OpenAI has spent as much as $8.5 billion, of which $7 billion was allocated to large linguistic model (LLM) training and inference, and the remaining $1.5 billion was used for personnel training.

Furthermore, from the information, we know that around $700,000 is required per day to run ChatGPT. Even though the company is so famous, it still can’t keep up with its huge expenses.

If everything keeps going like this, Open AI will suffer a loss of $5 billion by the end of the fiscal year. The business model is not very successful, and the company could go bankrupt at this pace.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

Bioware Downsized To Less Than 100 Devs Following Dragon Age Failure

A new report states that BioWare has reduced its team to less than 100 people after the failure of Dragon Age: The Veilguard.

Spider-Man 2 Launches To 3x Lower Concurrent Player Count Than Predecessor on PC

Spider-Man 2 seems to be underperforming on PC so far, showing much worse player counts than its predecessor on the platform.

Elder Scrolls Creator Says Modern RPGs Are Too Linear And Lack Freedom

The Elder Scrolls co-creator has stated that he doesn't like how RPG games have become so small, as they should offer more freedom.

Gears of War Remastered Collection Reportedly Real And Heading To PS5 Day One

It seems Xbox is indeed working on Gears of War Remastered Collection, a game that will also be released on the PS5.

Dragon Age Writer Says Series Is Not Dead Amid Veilguard’s Colossal Failure

One of the BioWare writers has reassured fans that the Dragon Age franchise isn't dead as long as it belongs to the fans.