OpenAI Might Lose $5 Billion in 2024, Putting Its Future at Risk: Report
Let me bring you up with the news that OpenAI is running a loss making business and is predicted to lose as much as $5 billion in the next year, 2024, a position that may force OpenAI, the maker of ChatGPT, out of business in the next twelve months, as analysed by The Information.
As claimed in the report that relied on information from new financial documents and insiders about the business, OpenAI plans to spend over $7 billion on the AI training only and over $1. 5 billion on staffing. That is significantly higher than the claimed figure of competitors like the Anthropic backed by Amazon, which plans to reach a burn rate of $2. 7 billion.
This amounts could mean that OpenAI will have to withdraw on another funding round, within the next one year, in order to strengthen it is balance sheet as stated in the report. Exactly, as of now, OpenAI was funded for seven times and managed to attracted more than eleven (11) billion dollars, information deduced from Tracxn More recently the new funding was private and Laurence and Tilan Lupin in April 2021 with funds from ARK Investment Management that the amount raised was undisclosed.
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Earlier, OpenAI did not respond to requests for comments.
ChatGPT was unveiled by OpenAI in November 2022. The AI assistant started to gain the target popularity rapidly and reached over one hundred million of weekly active users. The American AI firm revealed the development of a new generative AI, GPT-4o Mini on July 18.
OpenAI is also said to be developing another AI model that has an ability of reasoning that is far much higher than the current GPT-4o. The new model, which will be named “Strawberry”, will also respond more like a human, it is said.
It experiences legal pressures, such as a possible probe by the United States Securities and Exchange Commission connected to misbehavior regarding NDAs. On July 23, US lawmakers wrote to OpenAI’s chief executive officer Sam Altman regarding safety measures and employment policies in OpenAI.
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