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OpenAI is supposed to face Bankruptcy by Late 2024: Report

After its November 2022 launch, ChatGPT by OpenAI became the app with the highest rate of growth in history. Since its introduction, it has raised anxiety about replacing people in occupations as well as excitement. According to a recent article in Analytics India Magazine, the business may file for bankruptcy by the end of 2024.

According to the source, when OpenAI submitted a trademark application on GPT, it was projected that many customers would eventually quit using the technology and that the application would spell the end for the company. The report also included data indicating a drop in users on the ChatGPT website between the months of May and June. According to a report from SimilarWeb on August 3, ChatGPT traffic declined for the second consecutive month.

Reports on OpenAI

July had a 9.6 percent reduction, compared to a 9.7 percent decline in June. Speaking of users, there were 1.5 billion in July, a 12 percent decrease from the 1.7 billion in June. The study also mentioned a user on X who claimed that API cannibalization, in which most businesses have been forbidding their employees from accessing it for work, maybe a significant factor in this reduction. However, you’re free to incorporate the large language model (LLM) into other workflows by using the API.

According to Analytics India Magazine, Mark Zuckerberg’s Meta, which recently introduced its Llama 2 chatbot, maybe another factor. The Llama 2 software, for which Microsoft has been selected as Meta’s preferred partner, is accessible via the Windows operating system. In order to enable research and modification, Meta’s Llama 2 has declared its product open source, which implies that the original code is easily accessible.

Additionally, according to media estimates, OpenAI pays about $700,000 each day to operate ChatGPT. Microsoft and other new investors, according to Analytics India Magazine, are paying these expenses out of their own pockets, which could eventually deplete them if it does not start to make money soon.

ChatGPT by OpenAI

The company’s losses since it began creating the AI chatbot have doubled to $540 million as of earlier in May. Additionally, the business anticipates $200 million in yearly revenue for 2023 and $1 billion in revenue for 2024. According to the research, this appears blurry as the losses continue to increase.

Another factor can be the ongoing lack of graphics processing units (GPUs). Altman had made note of how the company’s ability to advance and create new models was hampered by the scarcity of GPUs on the market. Media sources from earlier on August 3 also claimed that the corporation had submitted a trademark application for “GPT-5.” This further suggests that the company intends to continue developing training models. Given these circumstances, the research warned that OpenAI may need to file for bankruptcy by the end of 2024 unless it quickly raises more funding.

Other Competitions

ChatGPT by OpenAI

Bloomberg had earlier on July 19 reported that Apple was developing a chatbot powered by artificial intelligence that might compete with OpenAI and others. But the corporation has not yet developed a clear plan for making the technology available to consumers. Elon Musk also asserted that his new AI business, xAI. Its superior to Google and OpenAI in terms of understanding the cosmos. He has criticized Microsoft’s influence on OpenAI. Musk is educating xAI to share human ideals and be “maximally curious.” Musk has criticized OpenAI, a business he assisted in founding in 2015. According to the millionaire, OpenAI is “training AI to be woke” and is “effectively controlled by Microsoft.”

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