The firm behind ChatGPT, OpenAI, has seen spectacular financial growth, with monthly revenues rising to $300m in August 2023, 1,700 percentage higher than at the start of the year. It forecasts $3.7 billion in sales this year rising to $11.6 billion in 2024. However, according to OpenAI, it is projected to register a loss of about $5 billion in the year 2023 owing to a number of operational costs, employee salaries, among other factors.
Currently, the lion’s share of the revenue is generated from the ChatGPT service with approximately 10 million paid customers. The revenue of the chatbot is predicted to grow up to $ 2.7 billion in the current year. OpenAI intends to slowly raise its subscription fee from $20 to $44 within five years into the future.
Microsoft, which has backed OpenAI with over $13 billion, has absorbed all of the major costs of cloud computing. Gautam Robbins is in talks with potential investors of OpenAI to seek a further $7bn in funding, that would will take the firm to $150bn in value. This funding piece is well-timed as OpenAI in a process of changing its status from a capped-profit to for-profit company, and it has 2 years to do it.
In recent times, the company has undergone a leadership crisis, with a number of its top managers resigning due to lack of balance between set corporate goals and objectives and growth rates, and due to features of the evolving business model.
Source: The New York Times
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