Fortunately, the creator of ChatGPT, OpenAI has going through financial challenges, reportedly they have lost up to $5 billion in 2024. It was noted that the company’s expenditure has reached $7 billion on AI training and $1.5 billion on staffing, suppressing the cost of rival Anthropic, which has a rate of $2.7 billion in 2024. Open-AI has already raised $11 billion through seven funding rounds with recent investment from ARK Investment Management and might go through another funding round in these 12 months.
Since ChatGPT came into existence in November 2022, it has rapidly gained popularity exceeding 100 million users weekly. Also, Open-AI introduced a new generative AI model “GPT-4o Mini” on 18 July this year, and reportedly making advancements towards providing a new model which is expected to come with more human-like features and will be named “Strawberry” with superior reasoning capabilities compared to the current GPT-4o.
Meanwhile, leading towards advancement in its technology, Open-AI still faces regulatory Scrutiny. The United States Securities and Exchange Commission may investigate the company for alleged misconduct related to non-disclosure agreements. In addition to this, U.S. lawmakers have shown their concern towards the CEO Sam Altman of Open-AI, on July 23, about the related issue for the company’s safety standards and employment practices. Also, a letter by the Washington Post concerns the Open-AI for their transparency and asks to cooperate with US government agencies for their business’s pre-deployment testing, review, analysis, and evaluation of its next foundation model
Therefore, facing these financial and regulatory pressures Open-AI to negotiate towards the continuity of their innovation in the AI space. The company’s sustainable investment in AI training and staffing may going through its commitment in advancing AI technology, also involves financial risks that could lead to significant impact on its long-term viability.