ChatGPT may go belly up if additional funding is not secured the soonest, according to the Analytics India Magazine. The study says that OpenAI is looking down the barrel as "competitions are coming up, losses are increasing, users are declining, lawsuits are piling up, and the quality is going down as well."
According to the report, the operating costs of the ChatGPT project is too high and the monetization has not opened up a financial path that offers certainty. According to OpenAI co-founder Sam Altman, the company needs a whopping $700,000 per day to keep the chatbot functional.
Monetization
The aim of the monetization scheme was to generate $200 million this year and ramp it up to $1 billion by 2024. The company was generously funded by Microsoft, but it remains to be seen if the tech giant will offer additional funding beyond the $10 billion it has already funneled in. Microsoft and other investors in OpenAI will certainly look at the product turning profitable, but a host of factors prevent that from happening in the short term.
According to web traffic data, there is steady decline in the number of users of the chatbot since it touched a peak in May. The number of website visits declined form 1.9 billion a month in May to 1.7 billion in June and then to 1.5 billion in July.
According to experts, the major reason for the decline is the increasing use of the API by users and companies and the often unstated ban the companies have enforced on the use of the chatbot by employees. While a lot of companies prohibit the employees from using ChatGPT for work, they instead allow them to use the API to leverage the large language model (LLM) in different workflows, the article points out.
