Meta Digest

OpenAI could hit bottom in 2024 and file for bankruptcy

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OpenAI — OpenAI pioneered the usage of chatbot AI ChatGPT in November 2022, ushering in a new era of AI-driven innovation. It swiftly rose to prominence as one of the most popular applications in history. The chatbot’s effectiveness has sparked both enthusiasm about how far the technology may be extended and concern that AI would someday replace people in professions.

According to a worrying report in Analytics India Magazine, OpenAI may become bankrupt by 2024.

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The report

The article claims that OpenAI sealed its own doom by registering a GPT trademark. It was also anticipated that the number of people who utilized the technology would gradually decline until it was no longer used at all.

According to the report, the ChatGPT website received fewer visitors in June and July than it did in May. SimilarWeb data on ChatGPT traffic was disclosed earlier this month, suggesting that the website’s traffic dropped for the second month in a row. July had a 9.6% drop, while June saw a 9.7% drop. 

Despite a significant drop of 1.7 billion users in June, July had a 12.5% drop of 1.5 billion users.

Other factors for OpenAI’s declining use

According to one X (Twitter) user, API cannibalization is one of the reasons OpenAI is declining, with most organizations forbidding its use at work. However, in the future, the technology might be employed for different purposes.

According to Analytics India Magazine, Mark Zuckerberg and Meta recently revealed the Llama 2 chatbot, which might help OpenAI in its present position. Microsoft, Meta’s chosen Llama 2 partner, will make the technology available through the Windows operating system.

Meta’s Llama 2 has been open sourced, which means anybody may examine and alter the original code.

OpenAI’s spending

According to sources, OpenAI spends around $700,000 every single day on ChatGPT. According to Analytics India Magazine, Microsoft and other investors have been funding expenditures out of their own pockets, potentially resulting in a financial crunch if revenues do not materialize soon.

Since the debut of the AI chatbot, OpenAI’s losses have more than quadrupled, hitting $540 million in May. The business anticipates annual revenues of $200 million in 2023, with a goal of $1 billion in 2024. However, as the losses pile up, the objective appears to be slipping away.

GPU shortage

Graphics processing units (GPUs) are in short supply, which may aggravate OpenAI’s issues. Because of the market’s scarcity of GPUs, the company’s ability to change and generate new language models has increased.

According to media reports, OpenAI has applied for a trademark for the word ‘GPT-5,’ implying that the corporation intends to continue training models.


In mid-July, Bloomberg reported that Apple was working on its own AI-powered chatbot to compete with OpenAI and others. Despite the fact that the technology appears promising, the firm has yet to devise a strategy for making it available to the general public.

Elon Musk has also jumped into the AI race, claiming that his xAI company knows the universe better than Google and OpenAI. He has spoken out against Microsoft’s influence on OpenAI. Musk’s organization is teaching artificial intelligence to be “extremely curious” and to investigate human interests.

Despite contributing to the creation of OpenAI in 2015, the Twitter buyer who renamed the well-known brand “X” has been skeptical of the company for some time. He claims that OpenAI teaches AI to follow “woke ideals,” which he claims are “effectively controlled by Microsoft.”

The public market

OpenAI CEO Sam Altman stated in June that the business had no intentions to go public anytime soon.

“When we develop super intelligence, we are likely to make some decisions that most investors would look at very strangely,” he told Reuters.

“I don’t want to be sued by… the public market, Wall Street, etc. So no, not that interested.”

So far, the business has received $10 billion in funding from Microsoft, for a total worth of $30 billion, while investing in computer capacity expansion. OpenAI began as a non-profit organization before transitioning into a hybrid “capped-profit” organization that allows for external investment while vowing to maintain its earlier non-profit structure.