September 29, 2023

The losses of Microsoft-backed OpenAI, the developer behind highly-successful AI chatbot ChatGPT, reportedly swelled to just about $540 million final yr and are prone to solely maintain rising.

Based on The Info, OpenAI’s losses doubled because it developed ChatGPT and employed key staff from Google.

“The beforehand unreported determine displays the steep prices of coaching its machine-learning fashions throughout the interval earlier than it began promoting entry to the chatbot,” the report famous.

OpenAI in February this yr launched the brand new subscription plan, ChatGPT Plus, that’s out there for $20 a month.

Nonetheless, the report talked about that even when the income picks up, OpenAI’s losses are prone to maintain rising as “extra prospects use its synthetic intelligence expertise and the corporate trains future variations of the software program”.

OpenAI CEO Sam Altman has “privately prompt OpenAI might attempt to elevate as a lot as $100 billion within the coming years to realize its intention of growing synthetic normal intelligence (AGI) that’s superior sufficient to enhance its personal capabilities”.

Elon Musk, Twitter CEO and an early investor in OpenAI, tweeted late on Saturday: “That is what he (Altman) advised me”.

Musk, who has criticised OpenAI a number of occasions, final month created a brand new firm known as X.AI which is able to promote AI within the ChatGPT period.

It was Musk who initially invested $100 million in OpenAI, however later exited the corporate.

In current months, ChatGPT and GPT-4 have turn out to be a rage worldwide.

OpenAI just lately closed a greater than $300 million share sale at a valuation between $27-$29 billion, in response to stories.


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