ChatGPT, an AI chatbot developed by OpenAI, came at a heavy cost, with the startup seeing its losses almost doubled to around $540 million last year – according to the new report from The Information. This figure highlights just how much was invested into building and running the technology. ChatGPT utilizes serious computing power, allowing it to generate answers to user prompts. As such, Dylan Patel, Chief Analyst at SemiAnalysis, says OpenAI may have to allocate roughly $700,000 daily just to use the technology.
Moreover, the success of ChatGPT seen in 2020 cannot be overlooked. It became the fastest-growing consumer application in the world after recording no less than 100 million monthly active users in two months. With this in mind, OpenAI CEO Sam Altman has mentioned that the company will become the most capital-intensive startup in Silicon Valley – a set of words that implies there are still more investments to come as OpenAI works towards developing Artificial General Intelligence (AGI).
OpenAI’s financial position improved substantially when it managed to secure a multi-year, multi-billion dollar investment from Microsoft earlier this year. This will help OpenAI to offset the increasing costs, with the startup’s revenues projected to reach $200 million this year, followed by a gradual climb to $1 billion in 2024, according to Reuters.
John Hennessy, the chairman of Google’s parent company Alphabet, has also mentioned that search queries on the tech giant’s own chatbot Bard cost ten times more than a regular search.
OpenAI, founded in 2015, is an American artificial intelligence research laboratory and a for-profit enterprise. The lab is focused on researching and developing advanced artificial intelligence technologies, as well as working towards replicating the functions of the human brain in machines. It is led by CEO Sam Altman, a well-known entrepreneur, investor and programmer. Altman previously co-founded Y Combinator and was president of the firm from 2014 to 2017. His efforts in the tech industry have been recognised in the media, with him having been featured on the cover of Forbes in 2017.
