Last Update: May 08, 2023, 18:07 IST
OpenAI is making headlines but the business is in deep losses
OpenAI is building its army of AI applications, but the company as a business is faltering.
Losses of Microsoft-backed OpenAI, the developer behind the highly successful AI chatbot ChatGPT, reportedly swelled to nearly $540 million last year and are only likely to keep growing.
Reportedly, OpenAI’s losses doubled as it developed ChatGPT and hired key staff from Google.
The report noted, “The previously unpublished figure reflects the enormous cost of training its machine-learning models during the period prior to selling access to the chatbot.”
OpenAI launched a new subscription plan, ChatGPT Plus, in February this year, which is available for $20 per month.
However, the report noted that even as revenue grows, OpenAI’s losses are likely to continue to grow as “more customers use its artificial intelligence technology and the company trains future versions of the software”.
OpenAI CEO Sam Altman has “privately suggested that OpenAI may seek to reach $100 billion in the coming years to achieve its goal of developing artificial general intelligence (AGI) that can improve its capabilities.” advanced enough to do”.
Twitter CEO and early investor in OpenAI Elon Musk tweeted late Saturday: “That’s what he (Altman) told me”.
Musk, who has criticized OpenAI several times, last month created a new company called X.AI that will promote AI in the ChatGPT era.
It was Musk who initially invested $100 million in OpenAI, but later exited the company.
In recent months, ChatGPT and GPT-4 have become popular around the world.
According to reports, OpenAI recently closed a share sale of over $300 million at a valuation between $27-$29 billion.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)
