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OpenAI Poised For RM23 Billion Loss After Spending RM39 Billion Training ChatGPT

Building ChatGPT is expensive.

Cover image via NSTP (Reuters) NSTP (AFP)

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It's expensive to build and iterate on ChatGPT. Just ask OpenAI, which reportedly spent USD8.5 billion (RM39 billion) on hiring people, maintaining its servers, and training the AI chatbot

The company, founded by Sam Altman, is now on course to burn an additional USD5 billion (RM23 billion) according to an investigative report from The Information.

The tech startup news platform gathered data from unreleased OpenAI financial statements and projected their findings against various industry figures.

Nine years after the company was founded, OpenAI continues to bleed cash despite a rumoured USD10 billion (RM46 billion) investment from Microsoft.

Image via NSTP (Reuters)

Unfortunately, OpenAI is not making enough money to break even. It may post a USD5 billion (RM23 billion) loss at the end of its financial year

The Information claimed that the startup spent a hefty USD7 billion (RM32 billion) chunk on large language models alone.

The company spent USD1.5 billion (RM6.9 billion) to hire people to build and train ChatGPT.

According to analysts' estimates, it costs around USD700,000 (RM3.24 million) per day to keep ChatGPT going. A huge chunk of the expenditure goes to Nvidia's AI servers.

Despite being the first artificial general intelligence company, OpenAI faces stiff competition from newer players

Among its growing competitors list include Anthropic, Amazon, Google, Nvidia, Meta, xAI, and others, causing it to lose its market share.

That said, many analysts said that the cost to train AI and manufacture chips will reduce over time.

In other words, OpenAI, worth USD80 billion (RM370 billion), won't go bankrupt anytime soon.

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