[ad_1]
A major company can be struggling financially even though it doesn’t show it. This is the case with AI empire OpenAI. This is the company that gave us DALL-E and ChatGPT. Well, OpenAI is burning through money, and it might be looking at bankruptcy if things don’t change.
OpenAI has enjoyed a ton of attention as the company that broke the internet twice (first with DALL-E then with ChatGPT). With the $10 billion investment from Microsoft plus investments from other companies, you’d think that OpenAI has enough funds to make its ambitions come true. Honestly, it might.
However, the issue stems from the money going out. While the company has massive financial backing, it’s still burning through a ton of money just operating. It costs the company about $700,000 a day to run! That number might not be substantial to other major companies, but the issue is that there’s no major way to monetize its services.
There’s the $20/month subscription plan to get additional features. Also, companies pay OpenAI to use its API. This is why so many chatbots are popping up all of a sudden. They pay OpenAI to use its LLM.
However, that doesn’t seem to be enough to turn a profit. The company doesn’t display ads on its website, which would probably be another decent revenue stream.
OpenAI is actually close to bankruptcy
This is a scary time for OpenAI, as the company just isn’t bringing in as much money as it needs to please the investors. Microsoft seemed to take a liking to the company, but at the end of the day, money is money. So far, since ChatGPT hit the internet, OpenAI has burned through more than $540 million.
OpenAI is going to need to find some serious ways to monetize its company and cut costs. If things continue like this, then OpenAI will turn into just about every other tech company nowadays. We’re going to see it raise its prices, laying off people en masse, or both.
[ad_2]
Source link