Despite ChatGPT’s staggering popularity, the chatbot still lacks a successful revenue model and its high costs have plagued OpenAI.
OpenAI apparently pays a huge fee to keep ChatGPT active and serve users of this chatbot on a daily basis. This issue has caused this company to be exposed to a financial crisis and may even face the risk of bankruptcy in the future.
According to Analytics India Magazine, OpenAI spends around $700,000 a day on providing ChatGPT services. Although the chatbot has seen a lot of success in recent months, it seems that it has yet to generate enough revenue to cover its costs.
The report says that the number of OpenAI users has also been gradually decreasing in recent months. According to SimilarWeb, the number of users visiting the ChatGPT website dropped by about 12% in July compared to June. This amount has increased from 1.7 billion to 1.5 billion but does not include the company’s API users.
However, OpenAI’s API has faced heavy competition from some open-source language models such as LLaMA 2, which are free to use and manipulate. These open-source models can be customized and manipulated, unlike the paid, closed and proprietary model of OpenAI.
Sam Altman has fallen out with OpenAI staff
The current report says that differences have arisen between “Sam Altman”, the CEO of OpenAI, and other members of this team. While the company has focused on profitability and developing more advanced versions of GPT, Altman has been busy stressing the dangers and risks of artificial intelligence.
Despite Altman’s concerns about the product he created, OpenAI has been working on new ways to monetize GPT-4. However, they have yet to turn a profit and have lost around $540 million since the development of ChatGPT.
The company had previously projected annual revenue of $200 million in 2023 and $1 billion in 2024, but those numbers now look very out of reach. OpenAI is currently facing the option of going public or selling itself to another tech company.
On the other hand, this company has also failed to retain its talented human resources. Many OpenAI employees have left the company in recent months for other companies active in the field of artificial intelligence.
In general, factors such as unstable economic conditions, a decrease in the number of users, the decline in product quality, and even limited access to the necessary hardware to maintain the stability of services are among the reasons that put the future of OpenAI in an aura of uncertainty. This company must now seriously look for a way to generate income so that it can secure its future and not lose more employees.
