ChatGPT owner OpenAI is losing money like anything and this is its biggest problem
OpenAI is actually facing some significant financial challenges as OpenAI CEO Sam Altman revealed that the company is currently losing money on its $200 per month ChatGPT Pro subscriptions, reported Futurism.
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According to Futurism, in spite of having around 10 million paying subscribers, at the same time, the high operational costs associated with running advanced AI models have outstripped the revenue altogether. Sam Altman also noted that users are consuming resources at a much higher rate than anticipated while leading to unexpected huge losses.
The operational expenses of the company OpenAI are actually staggering with estimates suggesting that OpenAI spends approximately $700,000 daily to run ChatGPT, asserted Futurism. This has raised severe concerns about the sustainability of its pricing model specifically when a single query can cost up to $1,000.
The projected losses of OpenAI for the year 2024 are around $5 billion against revenues of $3.7 billion while prompting the board to acknowledge a need for more capital than previously anticipated.
During such tough times, in response to these financial pressures, OpenAI is actually considering raising the subscription prices and restructuring its operations to attract new investments, noted Futurism. While OpenAI has already risen around $20 billion since its inception
