Why Open AI Could Go Bankrupt in 2024
Chat GPT is a chatbot service powered by Open AI's common language model that can generate natural and engaging responses based on user prompts.
However, running such a sophisticated AI system is not
cheap, and according to some estimates, it could cost OpenAI up to $700,000 per
day or $3 million per month to operate ChatGPT.
The main reason for this high cost is the expensive servers that ChatGPT requires to run.
- Chat GPT uses massive amounts of computing power to calculate responses based on user prompts, and it needs at least eight NVIDIA A100 GPUs for a single query.
- These GPUs are not cheap, and Microsoft, which hosts Chat GPT on its Azure cloud platform, charges $3 an hour for a single A100 GPU.
- This means that each word generated by Chat GPT costs $0.0003, and a typical response with 30 words costs at least 1 cent.
- To reduce the cost of running Chat GPT, Microsoft is reportedly developing a secret AI chip called Athena, which could make the AI service more efficient and affordable.
- However, until then, Open AI will have to bear the high operational expenses of Chat GPT, which could pose a financial challenge for the company in the long run.
- Some analysts have even predicted that Open AI could go bankrupt by the end of 2024 if it does not find a way to lower its costs or increase its revenue.
- Chat GPT is an impressive and innovative chatbot service that brings many benefits to users and developers.
However, it also comes with a high price tag that could
threaten its durability and viability.
Hopefully, Open AI and Microsoft will find a solution to make
Chat GPT more accessible and affordable for everyone in the future.
Conclusion.
While Open AI's Chat GPT has transformed communication with its advanced AI responses, the high operational costs, primarily due to expensive server infrastructure and GPUs, present a financial challenge. These costs, estimated at up to $700,000 daily, could strain Open AI's finances and potentially lead to bankruptcy by 2024. Microsoft's efforts to develop an efficient AI chip offer hope, but until then, finding a balance between cost and accessibility is crucial for Chat GPT's sustainability. Despite its benefits, financial viability will determine its future success.