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The Information originally reported on this on May 4, 2023, and a major percentage of these losses can be attributed to the outrageous expenses of training language models. The expense of employing engineers to further its AI progress is another consideration.
According to insiders, OpenAI CEO Sam Altman privately expects the company to need another $100 billion to reach its aim of generating artificial general intelligence (AGI).
As the AI arms race heats up, OpenAI’s prices will certainly increase in 2023, resulting in an even bigger loss.
Despite the overwhelming success of ChatGPT, OpenAI plans to invest more capital than ever in cloud computing for powering its language models and training new versions.
Furthermore, data costs are set to soar as platforms like Reddit and StackOverflow have introduced policies that charge AI firms for access to their previously free data sets.
According to a recent New York Times report, Elon Musk cancelled OpenAI’s access to the Twitter data set after realizing they were only paying $2 million per year. It’s unclear whether OpenAI renegotiated access at a higher fee.
According to reports, OpenAI initially expected $200 million in revenue for 2023; however, internal estimations indicate that the business will exceed this figure.
The rapid adoption of ChatGPT’s “Plus” plan as well as API users employing OpenAI’s language models, such as social media app Snap, will both significantly contribute to income in 2023.
Microsoft’s $10 billion investment in OpenAI positions it to reap the rewards of the company’s ongoing success.
As part of this investment, Microsoft secured rights to 75% of OpenAI’s profits until its principal is repaid, as well as additional rights to 49% of profits thereafter.
Microsoft also gained priority access to OpenAI’s software, allowing it to resell OpenAI’s software to its Azure customers along with its own AI-powered products that utilize OpenAI’s technology.
OpenAI’s ambitious fundraising and close ties to Microsoft raise questions about whether other startups can compete on a similar scale.
Sam Lessin, a venture capitalist at Slow Ventures, believes that larger companies will eventually control the majority of the AI market.
To All Those Who Think Generative AI opens up new opportunities for startups, look at the stock price of Buzzfeed in the last 2 days. pic.twitter.com/at0N3tkOSa
— sam lessin 🏴☠️ (@lessin) January 27, 2023
At this point, it looks like Lessin is actually right.
Pitchbook estimates the global generative AI market will reach $42.6 billion in 2023, but skeptics doubt that startups will benefit, agreeing with what Lessin tweeted.
Although it is too early to predict anything, all we have to do is play the waiting game!
