OpenAI had really big losses last year, coming in at about 540 million dollarsdue to the large investments made for creare ChatGPT. While the company has grown in popularity and started making money with the paid version of ChatGPT, the cost of developing it weighs heavily on the company’s finances.
OpenAI, losses from 540 million dollars to develop ChatGPT
The costs for OpenAI last year were much higher than usual. ChatGPT’s training undoubtedly took a huge toll. But the company also came in the red for hire talent from Googleas revealed by several sources familiar with the financial situation of the startup.
This data, which had not been disclosed before, shows how expensive it is to train its machine learning models in the run-up to the commercial version of the chatbot launching in February.
The market launch, however, brought income. Indeed, revenue has grown, reaching an annual level of hundreds of millions of dollars in a few weeks after starting the paid service. However, costs remain likely to continue to rise as the number of customers using its AI technology increases. And the same goes for the company’s effort developing new versions of the software.
Faced with this financial challenge, the CEO Sam Altman privately hinted that OpenAI might try to raise up to $100 billion over the next few years. Investments to pursue its goal of building an artificial general intelligence that can self-improve its capabilities.