The users declined to 1.5 billion in July from 1.7 billion in June and 1.9 billion in May.
ISLAMABAD: Media reports suggest that OpenAI, the creator of ChatGPT, could face bankruptcy by the end of 2024 unless it secures additional funding soon.
Data from SimilarWeb reveals a continuous decline in users on the ChatGPT website during the first six months of the year.
The user count went from 1.9 billion in May to 1.7 billion in June and further dropped to 1.5 billion in July. It’s important to note that these figures specifically pertain to the website and do not consider the ChatGPT mobile app or APIs.
Challenges and Insights Surrounding ChatGPT
One potential explanation attributes the May decrease to the absence of students from school. Another theory posits that individuals opted to create their own bots instead of utilizing the original offering.
A user said in a tweet, “I am no longer allowed to use ChatGPT at work, but we have developed our own internal model based on ChatGPT”.
After OpenAI’s development of ChatGPT, which stirred concerns about potentially supplanting human creativity in the job market, the company encountered a doubling of its losses to approximately $540 million in the previous year. The Information’s report in May provided this information.
Interestingly, despite its impact, ChatGPT reportedly incurs an astonishing daily operational expense of $700,000 (equivalent to Rs 5.80 crore).
At some juncture, we will need to find a way to generate revenue from it; the computing expenses are remarkably high.
OpenAI CEO Sam Altman publicly acknowledged in a tweet that the “compute costs are eye-watering.”
According to a recent report, AI industry leaders such as OpenAI, Anthropic, or Inflection are not yet ready to enter the initial public offering (IPO) market
The report stated, “It is because it takes at least 10 years of operation and $100 million in revenue for an IPO to be successful.”
Furthermore, billionaire Elon Musk is adding to the pressure by asserting his intentions to construct a competing chatbot.
Despite OpenAI, backed by Microsoft, forecasting an annual revenue of $200 million for 2023 and setting a target of $1 billion for 2024, the company is grappling with increasing losses. Its primary sustenance largely relies on the substantial $10 billion investment from Microsoft.
