According to the latest reports, OpenAI has witnessed a loss that doubled to $540 million in the development of its AI chatbot ChatGPT last year. The cost to develop and run the AI chatbot has come down to its requirement for serious computing power which plays a crucial role in generating outputs to the prompts raised by users.
- A new report claims OpenAI’s losses witnessed a major jump to $540 million in 2022.
- OpenAI CEO Sam Altman has alluded to the growing costs of ChatGPT by suggesting that it was “going to be the most capital-intensive startup in silicon valley history”.
OpenAI faced a loss of $540 million last year
The latest reports suggest that OpenAI chatbot ChatGPT came at a heavy price. Apparently, the losses almost doubled to $540 million last year.
Earlier this year, it was reported OpenAI was able to secure a multi-billion investment with OpenAI. The figures showcased the cost of the startup which was racking up to roll out a commercial AI product. The cost of creating and running the AI chatbot ChatGPT has resulted due to its need for serious computing powers which plays an extremely crucial role in generating outputs to inputs raised by users.
The previously unreported figures showcased the steep cost that OpenAI underwent to train its AI chatbot before it started selling access to the chatbot. OpenAI launched ChatGPT Plus, a premium subscription plan in February that costs $20 a month and allows users to access the AI chatbot during peak hours along with early access to new features including GPT-4.
The cost of creating and running the AI chatbot ChatGPT has resulted due to its need for serious computing powers which plays an extremely crucial role in generating outputs to users’ prompts.
Last Month, Chief analyst of SemiAnalysis Dylan Patel stated that he believed that ChatGPT has the capability of costing about $700,000 almost every day to use the given cost involved with computed power.
Chairman of Alphabet (Parent company of Google) John Hennessy has stated previously that the cost of its AI chatbot Bard AI costs about 10 times as much as the regular search.
Sam Altman, CEO of OpenAI alluded to the rising costs, suggesting that this was eventually “going to be the most capital-intensive startup in silicon valley history,” he stated earlier this week.
According to a report by The Information, Sam Altman had “formerly indicated” that OpenAI is likely to raise about $100 billion in the future as the company works towards creating AGI (Artificial General Intelligence) which is claimed to be as strong as a human brain.
Ever since ChatGPT was released by OpenAI back in November there has been a massive rise in generative AI tools. The beneficial features and capabilities such as boosting productivity, generating human-like content, and more. Investors are similarly lured by the prospect of the technology depending on a variety of industries.
According to Reuters, It is projected that OpenAI might witness a rise in its revenue this year. The revenue is expected to hit about $200 million this year itself before rising to $1 billion next year.