OpenAI could lose $5 billion in 2024, with the company nearing bankruptcy in the next calendar year, according to a new report.
If the company doesn’t receive an influx in capital, bankruptcy is imminent according to The Information. However, with the financial backing of firms like Microsoft, it is likely OpenAI will secure additional funding.
In 2024, the technology firm is set to spend nearly $7 billion on training its Artificial Intelligence models, with an additional $1.5 billion on staff salaries. In comparison, Anthropic — the AI software with the financial backing of retail giant Amazon — is set to spend $2.7 billion total in 2024.
Financial reports show ChatGPT — OpenAI’s chatbot — costs $694,444 per day in hardware costs alone. The San Francisco tech firm earns about $2 billion in annual revenue and has received over $80 billion in seed money to get the projects off the ground.
Despite its mounting losses, the company continues to offer new products. Just last week it unveiled a new AI-powered search engine called SearchGPT. The new offering is limited to 10,000 users per day, but is eyeing quick expansion as users become less impressed by the changes from search behemoth Google.
