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OpenAI financial freefall

In the rapidly evolving landscape of artificial intelligence, openAI has emerge as a prominent player superheading, groundbreaking innovations and advancement. This Founded with a mission to ensure that Artificial General Intelligence ( AGI ) benefits all of humanity.

However as we head towards in to the future, the indication shows that this tech body might face some challanges or even backlash.

Who owns open AI

Elon Musk and his friend Sam Altman with others found this company in 2015 which’s headquarter is in San Francisco.

On initial days they started with $1 billion with the help of investors. However the only big name in this only Elon Musk but later on he left the company due to his priorities in its Tesla. We all know he is the CEO of Tesla and one of the most powerful and influenced people on earth.

Now the CEO of open AI is none other than other co-founder of the company Sam Altman. He’s serving as an CEO after Musk left the company and it’s president is Greg Brockman who is Ex- CTO of financial services and SaaS company stripe with chief scientist Ilya Sutskever formerly of Google.

OpenAI financial freefall

Open AI projects

Open AI is helping everyone, everywhere, every corner of the world through its capabilities, which include the following:

  • ChatGPT – By reading you’ve understand what we are going to talking about it is the most talking thing happen in tech history. The most advanced AI chatbot is made to help people for collecting data in seconds or it can generate answers and responses same as human which makes its more familiar to use.
  • GPT3 – it’s kinda like ChatGPT but in other form. In this it’s convert the human generated text by analysing on own and reply to that similar text.
  • DALL-E & DALL-E 2 – This AI platforms help to generate images by analysing the text which user describe and in result it generate the result of those text into images.KINDA COOL.
  • CLIP – Clip is a network which most people don’t know yet. It is a network which provide or gives caption from the text and images provided by people Clip gives you the most accurately captions that describe on that visuals, it’s also known as multimodal AI.
  • CODEX – Codex was made to help programmers and developers. Hence, it is made and trained on billions of lines of codes in various languages of programming. It is on GPT-3 technology.


With multi- billion – dollar investment in open AI in 2023 makes Microsoft its one of the biggest investors but it’s started in 2019 with Microsoft interest in Open AI makes happen this. In July 2019 Microsoft partnered with OpenAI in which Microsoft cloud, Azure has been updated through openAI.

Every one know how Microsoft slowly taking over openAI.

OpenAI financial freefall

There own search engine Bing is now using the same technology used in ChatGPT to produce AI version of Bing.

Elon Musk criticism on OpenAI is obvious, the company he started with his friends is now controlled by Microsoft. Musk said training AI to be woke” .

Musk is now creating its own AI named xAI.

Note – AI algorithms can analyse upcoming weather and other environment data to predict natural disaster and also diagnose disease.


New reports suggest, The downfall started when company applied trademark for GPT. The company itself predicted that majority of the users would stop using the technology.

On the month of August a report came that claims the ChatGPT traffic decreasing rapidly. In July the active users was 1.5 billion which got 12% decline as compared to June’s 1.7 billion users.

Another reason could be API cannibalisation in which big tech firms prohibiting their workers to not to use AI.

Mark Zuckerberg’s meta which recently released its chatbot “Llama 2” also been an another reason in declining users because now user got choices between them.

With spending of $700,000 per day to run ChatGPT, openAI and Microsoft covering this costs with their own money, which could makes them to stop this company if it’s not able to makes money soon.

With the $540 million loss in May 2023, the company is heading towards the target of annual revenue $200 million and $1 billion by the end of 2024 as per company data. But it’s look not so easy as it’s seen, hence the company loss is double than the earnings.

GPU Shortage

Altman told in interview that the shortage of GPUs ( Graphic processing unit ) is also a reason in their loss. Not having the GPUs affected the company load yet they are not able to develop their models and making regular updates in ChatGPT or other products.


We don’t need a proof to say that how big revolution OpenAI created after entering into market. OpenAI help people a lot in its own way by providing suggestions, images, answers etc etc. But we’ve seen how other tech giants also want to make it more revolutionary by entering in competition whether it is Microsoft or Google or Meta or OpenAI founder Elon Musk. Everyone wants to make changes in their own way.

But openAI is still way ahead from them but how long will it last we don’t know.
The competition got charged up by entering the big firms who have lot of money to invest and they already have well settled platform to do experiment and everything which make them keep ahead of others.

But fingers cross for openAI and our beloved ChatGPT to got more powerful and more earnings to stay in this competition.

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