The report by an Indian analytics journal claims that the company is on a path to bankruptcy by the end of 2024.
OpenAI, the AI studio led by Sam Altman might be on the brink of a potential financial crisis, as outlined in a report by Analytics India Magazine. The report said that the company might go bankrupt by the end of 2024. The report says that it costs OpenAI about $700,000 every day to run just one of its AI services- ChatGPT. Mr Altman’s OpenAI is burning through cash at the moment. Despite the attempt to monetise GPT-3.5 and GPT-4, the company is not able to generate enough revenue to break even at this point.
AwesomeAI on Gab explains why, and I very much doubt the reason will surprise you:
OpenAI (ChatGPT & DALL-E) might go bankrupt by 2024. What may be the reason for this hyped emerging product to not generate sufficient revenue? I suspect it because the company got converged too early, and as @voxday correctly described (as usual): no converged company can keep their focus on the core competence of their products.
We can tell that this applies here because A) how politically correct they made their algorithms, which in turn makes them less reliable and useful, and B) how the generated information becomes less accurate despite better neuronal training and improved hardware.
This brings me to the point I tried making several times in the past, and I am still preaching to everyone afraid of AI. Which is that there is no need to fear AI. It is getting as stupid as society, the smart people left for new exciting technology and the oligarchs are incapable of maintaining the narrative.
As such, I recommend getting used to the technology for personal gain and to keep creating true, beautiful and good content. While the military tries to create politically correct warfare machines that will never be as smart or adaptive as humans, and will fail like every fancy toy the western money laundering military complex has produced in recent years.
As soon as I saw that the image AIs didn’t permit women in bikinis or less, and the chat AIs killed every reference to the behavior of various races and ethnicities, I was pretty sure that monetization was going to be a problem. AI is ultimately just logic, and logic without logic is nothing. A converged technology, like a converged institution, is incapable of performing its core functions.