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OpenAI might lose up to $5 billion in 2024. It could go bankrupt within a year. Sam Altman leads it. The company spends too much money. If it doesn’t get more funding in 12 months, it could be in big trouble.
The Information reported this. OpenAI will spend about $7 billion on AI training and another $1.5 billion on staff. This is way more than competitors like Anthropic, which Amazon backs.
Anthropic plans to spend $2.7 billion in 2024. These high costs might make OpenAI look for more money soon.Running OpenAI is super expensive.
Just operating ChatGPT costs $694,444 per day in computer hardware alone. Semianalysis reported this.
The cost goes up when you include operations, R&D, and staffing. OpenAI makes about $2 billion in yearly revenue. Investors value it at over $80 billion.
The Financial Times said the company thinks it can double its revenue in 2025. Business customers like its AI tools.
Even though the report about OpenAI’s losses might be right, it probably won’t go bankrupt soon. It has strong backers like Microsoft and Sequoia. They will likely help it get more money in the next funding round.
Despite losing money, OpenAI keeps growing. It just announced an AI-powered search engine called SearchGPT. This new tool challenges Google.
SearchGPT is now limited to 10,000 users but will expand soon.So, while OpenAI faces big money problems, it’s also making big moves to grow.
It spends a lot, but it also earns a lot. It has powerful friends who will help it stay afloat. Keep an eye on how things turn out for them.