OpenAI’s losses nearly doubled last year as it developed ChatGPT and hired key employees from Google, according to people familiar with the startup’s finances. The vast majority of these high costs are due to ChatGPT’s training process as well as staff fees. It looks like ChatGPT continues to burn money to keep warm.ChatGPT is not cheap at all
The report, published by The Information and citing sources close to OpenAI, states that the company spent a staggering $540 million in 2022 to train the currently impressive AI chatbot. These funds were used not only to train ChatGPT, but also to transfer some key employees from rival company Google, which is developing its own artificial intelligence chatbot called Bard.
In January, Fortune released a report estimating OpenAI’s expenses. Specifically, OpenAI reportedly spent $416 million on computing and data training, $89.31 million on staff, and $38.75 million on unspecified operating costs. Additionally, in April, Dylan Patel, principal analyst at semiconductor research firm SemiAnalysis, stated that OpenAI spends $700,000 a day to keep ChatGPT servers up and running.
Could earn $1 billion
Earlier last week, OpenAI CEO Sam Altman suggested that the company is on track to become “the most capital-intensive venture in Silicon Valley history.” According to Altman, thanks to ChatGPT, the firm could earn $200 million in 2023 and $1 billion in 2024. While this figure may not sound like a lot for a popular company in Silicon Valley, it should be noted that OpenAI generated $30 million in revenue in 2022.On the other hand, Altman thinks that investment in OpenAI will increase radically. It is suggested that the firm could raise $100 billion in funding as it gets closer to building artificial general intelligence (AGI). For those who don’t know, AGI can be thought of as an AI-powered system that can perform any human task or find and learn how to complete it. However, technically speaking, it should be noted that a specific definition for AGI has not yet been made, even by engineers working in this field, as it is difficult to define what intelligence is. However, we can say that the main idea is an artificial intelligence that is “like a human”.
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