OpenAI Faces Potential Financial Risks, Reports Suggest

OpenAI may face a potential loss of $5 billion in 2024, which could deplete its funds within approximately 12 months, according to financial data from the firm and sources cited by The Information.

Sam Altman’s startup plans to spend around $7 billion on maintaining operations and training artificial intelligence, the publication notes. An additional $1.5 billion will be allocated for personnel. This exceeds the declared expenses of competitors like Anthropic, which plans to use $2.7 billion this year.

The Information’s journalists concluded that OpenAI might need another round of funding within 12 months to strengthen its financial position. The company has already conducted seven investment rounds, raising over $11.3 billion, excluding grants, according to data from Tracxn.

The article notes that OpenAI has 350,000 servers, with 290,000 supporting ChatGPT. Significant resources are also allocated for training a new AI model.

Previously, reports emerged about OpenAI’s work on a technology called Strawberry, which aims to significantly enhance the reasoning process of neural networks and enable them to plan actions ahead.

In June, Altman reported a twofold increase in the company’s annual revenue to $3.4 billion. This figure represents the income for the last month, multiplied by 12. At the end of 2023, the figure was $1.6 billion, and last summer it was about $1 billion.

According to Bloomberg, OpenAI developed a five-level scale to assess AI development and placed its chatbot between the first and second levels.

In July, the startup introduced a new artificial intelligence model — GPT-4o mini.