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ChatGPT is a money burning machine: this is how much it weighs on the losses of OpenAI (which will n

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ChatGPT is a money burning machine: this is how much it weighs on the losses of OpenAI (which will n

robort - 2023-06-03 09:52:42

The Information Portal has literally "calculated in the pocket" of OpenAI by calculating the cost of its flagship product, ChatGPT. The chatbot costs the company $700,000 a day and contributed to a 2022 loss of $540 million. However, the company's future looks bright, to say the least.

The American newspaper outlines a not-exactly exceptional picture, due to the business model currently adopted by the company. 
At first, in fact, ChatGPT had only free access which, of course, could not be sustainable in the long term. 
Subsequently, the subscription service was added which prioritizes the access of paying users and provides faster responses.

However, even this solution did not convince the editors. Journalists Erin Woo and Amir Efrati in their article believe that a price of $20 per month for the subscription is not enough to cover the costs that, in the face of a greater number of users, will be weighed down by the inevitable expansion of the infrastructure.

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Sam Altman, CEO of OpenAI, took care of allaying the worries, who pointed out that the company could raise over 100 billion dollars in funding in a very short time thanks to the high interest of companies in the next generation of ChatGPT and in the artificial intelligence.

Among these, of course, is Microsoft which has already invested 10 billion dollars in the OpenAI project to integrate ChatGPT features into its products and services (such as the Bing search engine, but not only).

In conclusion, determining what the future of ChatGPT is on a commercial level is quite complex, especially given the fact that there are many companies engaged in the development of their own generative artificial intelligence service.

What emerges from this balance sheet is that, like any other innovation, the costs are exorbitant. It should also be underlined, however, that huge losses have always characterized the advent of disruptive realities, whose profits come only after having acquired a critical mass of customers. This was true for giants like GoogleFacebook, and Amazon
All realities that initially faced accounts in the red, to then reap the benefits of the long-term investment.

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Robort Gabriel

Lagos, Nigeria

Freelance Web Developer, Native Android Developer, and Coding Tutor.

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