The rising cost of training AI models could cause OpenAI to lose up to $5 billion by the end of 2024 and face the risk of running out of money within 12 months.
The expensive cost of training the model is putting OpenAI at risk of running out of money within the next 12 months. Photo: Adobe Stock.
Based on the report cited from financial data, OpenAI is on track to spend about $7 billion on training AI models and $1.5 billion on personnel.
This figure far exceeds the cost of other rivals such as Amazon-backed Anthropic, with expected spending in 2024 of $2.7 billion.
According to The Information’s analysis, expensive operating costs could cause the ChatGPT maker to lose up to $5 billion by the end of 2024 and face the risk of running out of money within the next 12 months.
To strengthen its balance sheet, OpenAI may be forced to raise another round of funding within 12 months.
Previously, according to data from Tracxn, the father of ChatGPT has completed 7 rounds of funding and raised more than $11 billion.
Despite the rising cost, the next big development of ChatGPT is being rumored a lot in recent times.
On June 19, Ms. Mira Murati, Chief Technology Officer of OpenAI, gave some clearer information about GPT-5’s capabilities (tentative name).
Specifically, in an interview with Dartmouth Engineering posted on social network X, Murati described the jump from GPT-4 to GPT-5 as like someone who has graduated from high school and is entering college.