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ChatGPT Costs Rs 5.8 Crore Daily, Founders May Go Bankrupt By 2024

A report by Analytics India Magazine says that OpenAI-run ChatGPT has witnessed a decline in its users.

ChatGPT Costs Rs 5.8 Crore Daily, Founders May Go Bankrupt By 2024
POSTED ON August 14, 2023 4:13 PM

ChatGPT, which stands for Chat Generative Pre-trained Transformer, has made life easy for many. Every sector is experiencing tremors because of the advent of ChatGPT. Obviously, the owners of the company are heavily spending to run it. As per a report, OpenAI, the parent company of ChatGPT is spending $7000,000 (around Rs 5.8 crore) per day to run the platform.

Analytics India Magazine in its report said that investors could rethink their investment if the company doesn't turn a profit. It is only the fund from Microsoft which have kept the OpenAI floating a the moment. Microsoft has invested $10 billion in OpenAI. 

The company has projected that by 2023 it would earn a profit of $200 million and around $1 billion by 2024 but now it seems like a daydream, the report added. Forget profit, it said that OpenAI's losses have doubled to $540 ever since it started the project.

It has been claimed in the report that a huge decline has been seen in the users of ChatGPT. Quoting SimilarWeb's data, the report said that the user base has come down to 1.7 billion user visits from its best number of 1.9 billion users in July.

Desktop and mobile traffic to the ChatGPT website has witnessed a decline of 9.7 per cent in June compared to May. It has witnessed a drop in unique visitors as well, which stands at 5.7 per cent. Data reveals that the time spent by users has also registered a decline.

The report also refers to a user on social media X, who claims the major reason behind the visits by users is that the companies are restricting them to use the generative AI chatbot ChatGPT website for work but allowing them to use the API to leverage the large language model (LLM) in other workflows. 

However, amid the speculations brewing from all corners as to why the enthusiasm for the platform is steadily declining, Washington Post claims that it could be the effect of vacations in schools and colleges. While some experts are of the view that the newness of the generative AI tool might be wearing off.

The report citing the experts has revealed that OpenAI assumes that the reason behind the declining users is that people have started making their own products but interestingly the reason is the rise of open-source models. Meta Llama 2, in partnership with Microsoft, is allowing people to use the model for commercial purposes.

If the people have easy access to modified Llama 2 why would they opt paid version of ChatGPT, said the report. Graphic processing unit (GPU) shortage is one of the challenges among many.

ChatGPT would also face a challenge from Elon Musk who is building a rival chatbot called TruthGPT, which is not politically biased and gaining attention from the people. 

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