ChatGPT In Trouble: OpenAI may go bankrupt by 2024, AI bot costs company $700,000 every day

What a silly article. 700,000 per day is ~256 million a year. Thats peanuts compared to the 10 billion they got from MS. With no new funding they could run for about a decade & this is one of the most promising new technologies in years. MS would never let the company fail due to lack of funding, its basically MS's LLM play at this point.

There's no way Microsoft is going to let it go bankrupt.

That would explain why ChatGPT started regurgitating cookie-cutter garbage responses more often than usual a few months after launch. It really started feeling more like a chatbot lately, it almost felt talking to a human 6 months ago.

I mean apart from the fact it's not sourced or whatever, it's standard practice for these tech companies to run a massive loss for years while basically giving their product away for free (which is why you can use openAI with minimal if any costs, even at scale).

Once everyone's using your product over competitors who couldn't afford to outlast your own venture capitalists, you can turn the price up and rake in cash since you're the biggest player in the market.

It's just Uber's business model.

If AI was so great, it would find a solution to operate at fraction of the cost it does now

Clickbait crap.

huh, so with the 10bn from Microsoft they should be good for... just over 30 years!

This article has been flagged on HN for being clickbait garbage.

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Pretty sure Microsoft will be happy to come save the day and just buy out the company.

This article is dumb as shit

A couple of my coworkers will have to write their own code again and start reading documentation

Does it feel like these “game changing” techs have lives that are accelerating? Like there’s the dot com bubble of a decade or so, the NFT craze that lasted a few years, and now AI that’s not been a year.

The Internet is concentrating and getting worse because of it, inundated with ads and bots and bots who make ads and ads for bots, and being existentially threatened by Google’s DRM scheme. NFTs have become a joke, and the vast majority of crypto is not far behind. How long can we play with this new toy? Its lead paint is already peeling.

I don’t understand Lemmy’s hate boner over AI.

Yeah, it’s probably not going to take over like companies/investors want, but you’d think it’s absolutely useless based on the comments on any AI post.

Meanwhile, people are actively making use of ChatGPT and finding it to be a very useful tool. But because sometimes it gives an incorrect response that people screenshot and post to Twitter, it’s apparently absolute trash…

This is alarming...

One of the things companies have started doing lately is signaling "we could do bankrupt", then jumping ahead a stage on enshittification

A company that just raised $10b from Microsoft is struggling with $260m a year? That's almost 40 years of runway.

They are choosing to spend that much. That doesn't suggest that they expect financial problems.

Of course it will, all these companies are funded by tech giants and venture capitalist firms. They don't make money they cost money.

Its fine, i got my own LlaMa at home, it does almost the same as GPT

Good riddance.

Well, I was happily paying them to lewd up the chatbots, but then the emailed me telling me to stop. I guess they don't want my money.

If ChatGPT only costs $700k to run per day and they have a $10b war-chest, assuming there were no other overhead/development costs, OpenAI could run ChatGPT for 39 years. I'm not saying the premise of the article is flawed, but seeing as those are the only 2 relevant data points that they presented in this (honestly poorly written) article, I'm more than a little dubious.

But, as a thought experiment, let's say there's some truth to the claim that they're burning through their stack of money in just one year. If things get too dire, Microsoft will just buy 51% or more of OpenAI (they're going to be at 49% anyway after the $10b deal), take controlling interest, and figure out a way to make it profitable.

What's most likely going to happen is OpenAI is going to continue finding ways to cut costs like caching common query responses for free users (and possibly even entire conversations, assuming they get some common follow-up responses). They'll likely iterate on their infrastructure and cut costs for running new queries. Then they'll charge enough for their APIs to start making a lot of money. Needless to say, I do not see OpenAI going bankrupt next year. I think they're going to be profitable within 5-10 years. Microsoft is not dumb and they will not let OpenAI fail.

That’s a lot of crypto coins to sell

because i distrust this kind of technology in general and for sure it would add to the dystopian, anti-consumer, anti-workforce agenda big tech is currently enforcing. i work in desktop publishing and about 3/4 of jobs in that branche would be cancelled the moment ai could replace them for a fraction of the cost.

Good

The thing about all GPT models is that they’re based on the frequency of the word to determine its usage. Which means the only way to get good results is if it's running on cutting edge equipment designed specifically for that job, while being almost a TB in size. Meanwhile, Diffusion models are only GB and run on the GPU but still produce masterpieces because they already know what that word is associated with.

It's definitely become a part of a lot of people's workflows. I don't think OpenAI can die. But the need of the hour is to find a way to improve efficiency multifold. This will make it cheaper, more powerful and more accessible

Would help if they would offer more payment options than just credit card, which is not really popular in many countries

ChatGPT development, I feel it is completely possible

The development of ChatGPT makes it even more comfortable for users. From there, more and more free chatgpt are born for new users to experience

ChatGPT is still helping a lot, I don't want it to stop

LLM's are pricey to train and evaluate, much more so than compositional models.

But no, OpenAI aren't going bust due to this. Given that they have the most successful LLM on the market, it's safe to say that they probably know how much they cost, and can calculate roughly how much their yearly spend will be.

Not while Microsoft keeps pumping them with money.

Oh no... anyway

They're gonna be in even bigger trouble when it's determined that AI training, especially for content generation, is not fair use and they have to pay each and every person whose data they've used.

Good.

good.

Whatever, it was always some fly by night operation anyway. It's a cool toy but all this revolutionary crap talk was just like when NFT's showed up.

Sounds like poor management. I don't see how that is any one else's problem though.