Shulou(Shulou.com)11/24 Report--

CTOnews.com OpenAI may be in the midst of a potential financial crisis, according to a report from Analytics India Magazine, which said the company could go bankrupt by the end of 2024.

According to the report, OpenAI costs about $700,000 a day just to run its artificial intelligence service ChatGPT (CTOnews.com note: currently about 5.068 million yuan). OpenAI is currently burning cash, and although the company is trying to make money with GPT-3.5 and GPT-4, it is not yet able to generate enough revenue to break even.

ChatGPT was launched in November 2022 and is the fastest growing app in history. But after initially hitting record numbers of users, the company has seen user engagement decline in recent months. SimilarWeb's data shows that ChatGPT's user base declined further by the end of July. Compared to June, the user base in July 2023 decreased by 12%, from 1.7 billion users to 1.5 billion users.

In addition, the report states that there are open-source large language models (LLMs) that are freely available and can be modified for any purpose without any licensing issues. As such, they can be tailored and adjusted appropriately to specific use case scenarios that an organization may have. Meta's Llama 2, for example, launched in partnership with Microsoft, allows people to use the model for commercial purposes. So why don't people use a free, easily modifiable version of Llama 2 instead of a paid, proprietary and restricted version of OpenAI? And in some cases, Llama 2 is better than GPT.

The GPU shortage makes OpenAI even worse. CEO Altman has said that the shortage of GPUs in the market has prevented the company from training further models and improving them. Now that the company has applied for the trademark GPT-5, it is clear that the company wants to train it, which in turn leads to a significant drop in the quality of ChatGPT output.

OpenAI is not profitable yet, the report said. Since it began developing ChatGPT, its losses doubled in May to $540 million. Microsoft invested $10 billion in OpenAI, which may be what keeps the company afloat for now. But if OpenAI doesn't get more funding soon, the company may have to file for bankruptcy by the end of 2024 to buy more NVIDIA GPUs, which will launch in the second quarter of this year, and start training their models, the report said. By then, competition was getting fiercer, losses were mounting and users were dwindling.

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