Is OpenAI going bankrupt in 2024? Most likely no, here’s why

OpenAI knows partnerships are the key to a healthy AI development, and it tends to them.

by Flavius Floare

Flavius Floare

Flavius is a writer and a media content producer with a particular interest in technology, gaming, media, film and storytelling. He enjoys spending time in nature and at… read more

  • OpenAI has many ongoing AI projects including the newly announced SuperAligment project.
  • The company knows that AI partnerships are the key to healthy AI development. 
  • OpenAI might go bankrupt on its own, but later down the road.

openai going bankrupt

OpenAI, the company behind the popular ChatGPT, has made waves in the press in the last week, but not for some AI breakthroughs. On the contrary, the company has been touted by many publications as approaching bankruptcy as soon as 2024.

According to a report made by Analytics India Magazines, OpenAI might go bankrupt by the end of 2024. This is due to the fact that ChatGPT’s popularity is starting to wane, and it costs around $700k per day to maintain the popular AI tool.

In December, Altman admitted that the cost of running the AI company and ChatGPT was “eye watering”, and thus monetised it. According to a report, ChatGPT costs $700,000 per day to operate

Analytics India Magazines

Following the news of it, the global press covered the story, and now OpenAI is riddled with the dilemma of bankruptcy. But is it the case for a company that only weeks ago announced its intention to reach AGI and ASI in 4 years?

Most likely no, and this is why.

OpenAI is not going bankrupt anytime soon

OpenAI’s biggest investor is Microsoft, which invested $10 billion dollars in the company, according to the same report. The company also reported an annual revenue of $200 million in 2023, and it will reach $1 billion in 2024, so that’s 5x time the revenue in just one year.

It’s true, the competition is strong, and GPT is seemingly threatened by Llama 2, which is Meta and Microsoft’s newest AI partnership. But Microsoft is already using AI products that are based on GPT. For example, Bing Chat and Windows Copilot are both GPT-based.

And just recently Microsoft released Azure ChatGPT, another instance where Microsoft is clearly honing its OpenAI partnership. openai going bankrupt

But there is more than that: let’s suppose this competition is strong. We have Llama 2, then there is also Google’s Deepmind AI, Gemini, and OpenAI itself is reportedly working on its own open-source LLM, G3PO. These products are themselves the answers to each other’s limitations.

But we shouldn’t forget that AI development is first and foremost based on partnerships and collaborations. Llama 2 is a collaboration, and so are the endless AI projects funded by Microsoft.

Moreover, OpenAI will continue to work with Microsoft and other tech giants, and the newly-announced Superaligment Project, which wants to reach AGI in 4 years, is a testament to that. There is also the promise of safer AI development, and OpenAI is one of its founding members.

On its own, OpenAI will most likely face fierce competition, and probably is going to end bankrupt, but later on the road. However, the company is already forging partnerships with tech giants, and wisely so. And as long as it tends to those partnerships, which by themselves will manage to reach AGI, then OpenAI is going to be alright.

But what do you think? Let us know.

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