OpenAI Reports $540 Million Losses Amid Development of ChatGPT
OpenAI incurred losses of roughly $540 million in the last year during the development of its ChatGPT model and hiring of Google's key employees, according to three people who had knowledge of the company's financials. The costs of training its machine-learning models before selling access to the chatbot resulted in the losses. Although OpenAI saw a surge in revenue and started making hundreds of millions of dollars annually after it launched the paid version of ChatGPT in February, the costs of developing artificial intelligence could continue to rise as more customers use the technology and the company trains future versions of the software.
CEO Sam Altman has expressed his plans to raise up to $100 billion to achieve the company's goal of developing advanced artificial general intelligence that can improve its own capabilities. The rising costs of developing AI technology have had a significant impact on OpenAI's financials.
