TheSam Altman-led company is spending more cash than it should and that could force it to bankruptcy if it doesn’t get more funding within 12 months, reportedThe Information.
These expenses could force the company to close on yet another financing round within 12 months to stay afloat, said the report.
OpenAIis a costly business. Its AI chatbot,ChatGPT, costs $694,444 per day to operate in computer hardware costs alone, according to aSemianalysis report. This number would be much higher if you take the operations costs, R&D, and staffing expenses into account.
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
While The Information’s report about OpenAI’s losses might be correct, it’s unlikely that the company will go bankrupt just yet. With backers likeMicrosoftand Sequoia, the company will likely secure funding during the next seeding round.
Despite predicted losses, OpenAI continues to expand. Earlier this week, itannounced its own AI-powered search engine, challenging Google. SearchGPT is currently limited to 10,000 users, but it will see a wider rollout soon.
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Anurag Singh was a Tech Writer on Dexerto’s UK team, expertly covering laptops, smartphones, and wearables. He covers the biggest tech news from major brands such as Apple, Samsung, and Microsoft. He also has bylines at Android Police, Neowin, MakeTechEasier, Gizmochina.
