OpenAI facing bankruptcy in 2024? High operating costs make it difficult to turn a profit

Recently, Analyze India Magazine published a report stating that OpenAI AI service ChatGPT is facing financial difficulties and the company could face bankruptcy by the end of next year.

So why is that?

First, the trend has tapered off in recent months compared to the previous rapid growth in enrollment.

Specifically, the number of ChatGPT subscribers declined in June and July compared to May. Network data shows a continued decline in traffic, with a drop of 9.61 TP3T in July and 9.71 TP3T in June.In July, the number of subscribers decreased by 121 TP3T, from 170 million users to 150 million users.

The company discourages employees from using ChatGPT for work purposes, opting instead to integrate large-scale language models (LLMs) into their workflows. This is the case with Meta's previous collaboration with Microsoft on Llama 2. Additionally, OpenAI spends about $700,000 (roughly Rs. 580 million) per day to run ChatGPT, which Microsoft and other recent investors are paying for out of their own pockets.

OpenAI's losses have doubled this year to $540 million since it began developing ChatGPT.

Recent reports indicate that OpenAI has filed a trademark application for "GPT-5", hinting at a potential update to ChatGPT. The application indicates plans for a new language model, following the pattern of the GPT-3.5 and GPT-4 trademark applications. The trademark application does not provide details on potential features or a release schedule for GPT-5.

Apple's potential entry into the AI chatbot space and Elon Musk's claims that his AI company xAI is better add to the challenges OpenAI faces.OpenAI co-founder Musk criticized the company's relationship with Microsoft and itsartificial intelligence (AI) developmentMethods.

However, analyst Ming-Chi Kuo of Tianfeng International said there is no need to worry about "media reports that OpenAI may go bankrupt." AI/AIGC is a clear trend, but changes in the industry will create new winners and losers.