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OpenAI‘s ChatGPT may go out of business due to falling user numbers and financial losses. OpenAI’s ChatGPT became the fastest-growing platform in history after its introduction in November 2022. According to a recent news piece by Analytics India Magazine, the company’s financial future has raised concerns. According to the analysis, the corporation may declare bankruptcy by the end of 2024.
ChatGPT’s traffic has declined for the second month in a row
Concerns regarding the viability of OpenAI’s aim to register for a trademark on GPT led to forecasts that users would eventually quit using it, according to the paper. People utilized ChatGPT less in June and July than in May, according to the data. According to SimilarWeb data as of August 3, ChatGPT’s traffic has declined for the second month in a row, following drops of 9.6% in July and 9.7% in June. Notably, the number of users dropped by 12% in July, from 1.7 billion in June to 1.5 billion in July.
According to the paper, some of this loss is due to API (Application Programming Interface) cannibalization, which occurs when businesses prohibit employees from utilizing ChatGPT for business-related tasks but allow the large language model (LLM) to be included in other workflows. According to media sources, OpenAI pays $700,000 a day to run ChatGPT. While recent investors such as Microsoft have covered these expenditures, continuing to pay such fees in the absence of revenue could be detrimental. The latest trademark filing for “GPT-5” by OpenAI and its ongoing model training initiatives demonstrate the company’s commitment to making progress in this field. Despite these efforts, the report warns that OpenAI may be in financial trouble by the end of 2024 if more funding is not quickly secured.
OpenAI has encountered additional challenges, including Apple’s projected entry into the market for AI-powered chatbots
In the midst of these developments, OpenAI has encountered additional challenges, including Apple’s projected entry into the market for AI-powered chatbots and Elon Musk’s claims that his AI startup, xAI is superior. Musk, a co-founder of OpenAI, chastised the organization for its ties to Microsoft and its approach to artificial intelligence development. Formerly a non-profit organization, OpenAI has evolved into a “capped-profit” organization, receiving $10 billion from Microsoft to finance its growth while attempting to balance its initial non-profit goal. The company’s CEO, Sam Altman, has claimed that there are no imminent plans to go public due to uncertainties about whether decisions employing superintelligence will fulfill investor expectations.