OpenAI Won’t Go Bankrupt by 2024, AIM Opinion Mere Sensationalism

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[{"selector":"#anim-37363334-c84a-4aa1-8e21-bc888438b2fe","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9abcf3dc-be8f-496a-b553-d4cc844c7157","keyframes":{"transform":["translate3d(-116.38226%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] A recent opinion by Analytics India Magazine claimed that OpenAI will go bankrupt by 2024 due to the decline in user base, astronomical operational costs, and unrealistic revenue expectations. Image source: AIM

[{"selector":"#anim-5560ea90-dfe8-466c-ac63-23d3d6cb7c78","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-68093bb8-2292-4b2d-9ac4-c06eee559c12","keyframes":{"transform":["translate3d(-115.94685%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] However, on detailed analysis, the claims of AIM are found to be lacking expert insights, rendering the article to be perceived as mere sensationalism. Image source: Canva

[{"selector":"#anim-4faef57d-2c73-442d-adda-b936013e658d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6b8fb30c-eebd-4797-8f77-b403283ae941","keyframes":{"transform":["translate3d(-115.48388%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The article cited significant daily expenditures, notably around $700,000 per day dedicated solely to ChatGPT. However, the writer fails to consider the fact that such huge expenses are quite common for early stage startups. Image source: Canva

[{"selector":"#anim-9cc75bc2-3788-40db-b508-024981debaf1","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-db6536c5-21f5-4ec2-9122-fc9cb8fd10bf","keyframes":{"transform":["translate3d(-115.48388%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The report also mentions that ChatGPT user base has declined as users are making use of LLM APIs in their workflows. This assertion undermines the fact that APIs are also a major source of revenue for the startup. Image source: Canva

[{"selector":"#anim-885881d6-a941-428a-84db-4fc63eba6a3b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-777b8470-d45e-4ba8-abb4-5ae11567fcdb","keyframes":{"transform":["translate3d(-115.68628%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] After the AIM opinion gained some traction, Ather Energy CEO Tarun Mehta also took to Twitter to explain how the ChatGPT maker won’t go bankrupt despite various claims. Image source: Twitter

[{"selector":"#anim-22d272d6-7c2c-4b6a-985a-e562588bbabd","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c11c3d38-9ec4-48f6-bd02-c666f8098156","keyframes":{"transform":["translate3d(-115.73771%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Microsoft has invested about $10 billion in OpenAI. There is every possibility that it will continue to invest more as it poses a once in life-time opportunity to make Google eat dirt, and we doubt that it will let OpenAI go bankrupt. Image source: Analytics Drift

[{"selector":"#anim-fe05047c-63de-427f-9a4e-4fd585b300f4","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f0e25406-1498-4f2f-a631-80605203b2f5","keyframes":{"transform":["translate3d(-115.68628%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] OpenAI today announced that it has acquired a New York-based AI design studio called Global Illumination. Why would a startup, which is on the very precipice of bankruptcy, spend such crucial capital on acquisition? Image source: Global Illumination

[{"selector":"#anim-264ee45d-859d-42d0-bc17-e86ca03aa098","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3c1cd2ed-cbdc-4e2b-8cd7-828348cf08f7","keyframes":{"transform":["translate3d(-116.16162%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] We must consider here that OpenAI is still in its initial operational phase and has several companies, projects, and resources to raise decent funding from and stay afloat. Image source: Canva

[{"selector":"#anim-ae428239-9574-421e-b110-94d987adcdad","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-29bcd72f-dc1e-40a1-9958-44389c0988aa","keyframes":{"transform":["translate3d(-115.58442%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Considering all these facts, it is safe to say that OpenAI will not be going bankrupt, or at least at any rate not because of the reasons cited by the AIM article, and certainly not as early as 2024. Image source: Canva Read more

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[{"selector":"#anim-bbdf5138-cf2a-4ff1-8c02-9a1a380182a2","keyframes":{"opacity":[0,1]},"delay":100,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b210d61f-25dd-454e-9d43-4df172cac1b9","keyframes":{"transform":["translate3d(0px, -145.13887%, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-10fe0679-d6a7-4ff3-a2dc-ed0ad4d6b3f2","keyframes":{"opacity":[0,1]},"delay":200,"duration":1500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Get the latest updates on AI developments. Produced by: Sahil Pawar Designed by: Prathamesh Join Now