OpenAI, one of the companies that ignited the artificial intelligence movement, is facing financial difficulties, according to rumors. Although the company’s most famous product is ChatGPT, which will be released in 2022, it has many other projects, such as the SearchGPT search engine, which was introduced recently and is said to be a big blow to Google.
However, it seems that despite all these revolutionary projects, OpenAI is barely covering operational costs with its revenues. In fact, according to many reliable sources, the company It could cause a loss of 5 billion dollars and does not raise additional capital within 12 months You may start to run into cash shortages.
OpenAI Undertaken a Huge Financial Burden with ChatGPT
OpenAI is said to have come under a huge financial burden since launching ChatGPT. In fact, it is stated that the daily cost of the artificial intelligence tool is 700 thousand dollars and this amount will increase in the future. However, it is stated that the brand spent $7 billion on artificial intelligence training models and $1.5 billion on its staff.
SCOOP: OpenAI may lose $5B this year & may run out of cash in 12 months, unless they raise more $, per analysis @theinformation.
Investors should ask: What is their moat? Unique tech? What is their route in profitability when Meta is giving away similar tech for free? Do they… pic.twitter.com/i5EkvEFEQd
— Gary Marcus (@GaryMarcus) July 24, 2024
If analysts’ estimate of $5 billion in losses turns out to be true, OpenAI will face serious financial problems. It is underlined that it is inevitable for the company to find additional investments, such as the $13 billion investment made by Microsoft in the past, and otherwise it will face a cash shortage within 12 months.
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