It Costs USD 700,000 To Run ChatGPT Daily, Company May Go Bankrupt By 2024

OpenAI, the company that owns and runs ChatGPT may go bankrupt by the year 2024 if it continues burning cash in the running of ChatGPT according to a report by Analytics India Magazine. The Magazine says it costs USD 700,000 to run ChatGPT daily.

Although OpenAI has been trying to monetize ChatGPT, the Analytics says it may take ages for the company to break even, leave alone making profits. This appears to be a hanging dark cloud on the world’s first AI breakthroughs that has taken the world by storm.

Read Also: ChatGPT’s Impacts Will Be Social, Not Technical

According to the Magazine, OpenAI is currently managing to wade through the choppy waters, primarily due to Microsoft’s $10 billion investment.

However, with the company projecting annual revenue of $200 million in 2023 and $1 billion in 2024, which seems too good to be true, given plummeting userbase, the losses are expected to mount only. In May, the company’s losses doubled to $540 million, since the development started on the AI chatbot.

Read Also: How People Are Losing Millions To Fake ChatGPT Apps

While OpenAI and ChatGPT opened up to a wild start and had a record-breaking number of sign-ups in its initial days, it has steadily seen its user base decline over the last couple of months.

According to SimilarWeb, July 2023 saw its user base drop by 12 per cent compared to June – it went from 1.7 billion users to 1.5 billion users. Do note that this data only shows users who visited the ChatGPT website, and does not account for users who are using OpenAI’s APIs.

Read Also: CryptoRom Scammers Add AI Chat Tool, Like ChatGPT, And Fake Hacks On Crypto Accounts

At the same time, the paper notes that the tech war between US-China has also compounded OpenAI’s problems as there is a dearth of enterprise-level GPUs (Graphics Processing Units) in the market.

Read More:

• No Need To Fear Artificial Intelligence If Harnessed Positively
• How Artificial Intelligence Is Driving Sustainability
• Artificial Intelligence Technology You Can Start Using in Your Business