In a startling revelation, a recent report published by Analytics India Magazine has shed light on the popular AI model ChatGPT’s staggering daily operational costs. According to the report, AI studio led by Sam Altman might go bankrupt as it costs $700,000 (5.80 crore) everyday to run one of its services. This has raised concerns about the financial stability of the creator who is facing sky high costs to keep the AI running.
The report, compiled by Analytics India Magazine is a a platform that chronicles technological progress in the field of artificial intelligence, analytics and data science. According to reports, the company is unable to make enough of revenue despite attempts to monetise GPT-3.5 and GPT-4. Several companies which previously discouraged their workers from using ChatGPT for work purposes have now begun to develop their own AI chatbots with diverse work-plans. Open source Large Language Model (LLM) are AI models that are free to use and trained to generate human like language. According to the report, LLM’s can be customised and adapted to an organisation’s particular case scenario which will be mire beneficial to the company.
According to the report, another reason for chatGPt’s decline could be Mark Zuckerburg’s Meta unveiling Llama 2 chatbot, available through Windows operating system which enables users to modify the freely available original code. Altman also stated that the shortage of Graphics Processing Unit (GPU) in the market affected the company’s capacity to improve and develop new models.
What is ChatGPT and Why Has it Been Facing Losses Recently?
Chat GPT is an AI model developed by OpenAI that is designed to generate human-like outputs on inputs received through text. It was launched in November 2022 and had more than one million users within the first 5 days of its launch and had over 100 million active users by January 2023. However, according to a report by Similarweb, an internet data firm, ChatGPT’s mobile and desktop traffic dropped by 9.7% this June while July saw a decline of 12% in user engagement with 1.5 billion users as compared to 13 million new users each day on ChatGPt in the month of January.
OpenAI, the AI research company which looks forward to raising $100 billion this year, had doubled its losses to $540 million in 2022 due to the expenses incurred to develop the AI model ChatGPT. High costs of employment, hiring of skilled research workers and engineers from Google are some of the reasons for OpenAI’s huge losses. Microsoft’s $10 billion investment in the company is currently saving it from bankruptcy. However, the investors are covering these soaring costs out of their own pockets which could soon be dropped if no prospects are seen in the near future.