OpenAI, the company behind the revolutionary ChatGPT, could be facing serious financial problems that could lead to bankruptcy by 2025. Despite its enormous popularity and rapid growth, it may not have enough funding to pay its employees, innovation costs, and development of new language models.
The high cost of innovation
Maintaining and developing cutting-edge AI models like ChatGPT is not cheap, which is why OpenAI spends around $700,000 a day, which translates into billions of dollars a year, which must be covered with a good Partner or a large source of income.
Insufficient income
While OpenAI has managed to generate considerable revenue through subscriptions, this is not enough to cover its operating expenses. The company is projected to generate between $3.5 and $4.5 billion in revenue by the end of 2024, a figure that would not cover its annual expenses.
The need for financing
If OpenAI fails to secure significant additional funding in the coming months, bankruptcy could be inevitable. The company has been actively seeking investors, but uncertainty about its business model and the long-term profitability of generative AI could make it difficult to secure the funds needed to keep the massive OpenAI afloat.
