The development of the AI chatbot ChatGPT has cost OpenAI a significant amount, informed The information resource that cites sources familiar with the company’s financial performance. According to them, OpenAI’s losses roughly doubled to about $540 million last year when ChatGPT was launched.
These numbers show how much the company has spent on its program to deliver commercial AI products. The bulk of OpenAI’s cost of building and running ChatGPT is to provide computing power to generate responses to user queries, i.e. buying servers with GPU-based computational accelerators.
Dylan Patel, senior analyst at consulting firm SemiAnalysis, estimates that using ChatGPT OpenAI could cost around $700,000 per day given the cost of computing resources. Alphabet (Google’s parent company) CEO John Hennessy previously said that searching on Bard, Google’s own chatbot, costs 10 times more than a regular search.
Although OpenAI’s financial position has strengthened largely thanks to Microsoft’s multi-billion dollar investment, the growing demand for its chatbot, whose active user count has grown to 100 million in just the first two months of its launch, is becoming one further increase in lead the cost of the company. Earlier this week Sam Altman, CEO of OpenAI, said about rising costs “will be the most capital-intensive startup in Silicon Valley history,” writes The information.
As stated in the publication The Information, Altman “privately presumed”that OpenAI could attempt to raise about $100 billion in the coming years as the company works to develop artificial general intelligence (AGI), an AI as powerful as the human brain.
Reuters predicts that OpenAI’s revenue will increase significantly this year given the rapidly growing popularity of its technology. The company’s sales are expected to reach $200 million this year and then increase to $1 billion in 2024.