OpenAI's losses soar to $540 million due to ChatGPT development and employee hiring
According to a report by The Information, OpenAI, the developer behind the ChatGPT AI chatbot, reportedly suffered losses of nearly $540 million in the last year. These losses reportedly doubled as the company developed ChatGPT and hired key employees from Google. The training of machine learning models has also cost the company heavily before it started selling access to the chatbot. The new subscription plan, ChatGPT Plus, was launched in February this year. However, the report suggested that OpenAI's losses are likely to keep rising even if revenue picks up because more customers will use the technology and the company will train future versions of the software.
The CEO of OpenAI, Sam Altman, has privately suggested that the company may try to raise as much as $100 billion in the coming years to develop artificial general intelligence (AGI), which would be advanced enough to improve its own capabilities. Elon Musk, an early investor in OpenAI, has created a new company called X.AI, which will promote AI in the ChatGPT era. Initially, Musk invested $100 million in OpenAI but later exited the company.
Despite the losses, ChatGPT and GPT-4 have become highly successful AI chatbots, gaining popularity worldwide. OpenAI recently also closed a more than $300 million share sale at a valuation between $27-$29 billion.
Conclusion
Even though OpenAI's loss of nearly $540 million last year may seem staggering, the company is still committed to developing artificial general intelligence. OpenAI's ChatGPT and GPT-4 have been massive successes in the AI chatbot industry, and the company is continuing to innovate and improve its capabilities. Despite encountering financial losses, OpenAI is optimistic about its future and aims to become a world leader in the development of artificial intelligence.
