According to The Information, OpenAI could face a loss of up to $5 billion this year, primarily due to the high costs associated with running AI products like ChatGPT.
OpenAI, led by CEO Sam Altman, is currently valued at approximately $80 billion. However, it is expected to spend as much as $7 billion this year on training and operating its popular chatbot, ChatGPT. This substantial expenditure includes nearly $4 billion spent on renting Microsoft servers, which are essential for maintaining ChatGPT and its large language models.
Additionally, OpenAI needs to spend an extra $3 billion to update and train AI models. This money is not only for technical development but also includes agreements with publishers to obtain licenses for their copyrighted content, such as the agreement with News Corp, the parent company of the New York Post.
Another significant expense for OpenAI is the annual labor cost of $1.5 billion, covering the salaries of approximately 1,500 employees. To retain talent, OpenAI has had to significantly increase salaries, especially under pressure from competitors like Google and others in the AI field.
If these figures are accurate, OpenAI will face significant challenges in profitability, especially against the backdrop of expanding AI competitors like Google and Meta. Experts point out that investors need to pay attention to whether OpenAI can find a path to profitability in the future, particularly when companies like Meta offer similar technology for free, and whether OpenAI can launch competitive applications.
OpenAI recently introduced the GPT-4o model, which has the ability to engage in realistic voice conversations with users. Although this feature has sparked some controversy, such as the criticism from renowned actress Scarlett Johansson over OpenAI's use of technology similar to her voice.
Despite OpenAI's significant progress in the AI field, its substantial operating costs and increasing competitive pressures could pose a threat to its future profitability.
Key Points:
📉 OpenAI is expected to lose up to $5 billion this year, mainly due to the high operating costs of AI products.
💻 To maintain ChatGPT, OpenAI needs to spend nearly $4 billion on renting Microsoft servers and an additional $3 billion on training and updating AI models.
🤔 Experts question OpenAI's profitability prospects, especially in the context of competitors offering similar technology for free.