There are additionally steep prices concerned in creating giant language fashions (LLMs) and coaching them, which kind the spine of ChatGPT, a generative chatbot.
OpenAI launched ChatGPT final November, which has since taken the tech world by storm with main IT gamers hopping on the generative AI bandwagon.
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“Even as revenue has picked up, reaching an annual pace of hundreds of millions of dollars just weeks after OpenAI launched a paid version of the chatbot in February, costs are likely to keep rising as more customers use its AI technology and the company trains future versions of the software,” the report stated.
Despite income progress from paying clients, prices are anticipated to surge as LLMs want steady coaching to maintain up with queries being fed by customers, it famous.
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Microsoft has invested about $10 billion in OpenAI since 2019. OpenAI founder Sam Altman has reportedly recommended that the enterprise shall be “the most capital-intensive in the history of Silicon Valley” and may require fundraising of about $100 billion.“The San Francisco company’s recent pace of revenue means it is likely to exceed a projection it made last year that 2023 revenue would jump to $200 million. In 2022, by comparison, revenue was just $28 million, mainly from selling access to its AI software — the same kind that later powered ChatGPT — to app developers,” the report said.
In addition, Microsoft can even be eyeing a sizeable portion of those revenues after it “previously negotiated rights to 75% of OpenAI’s future profits until its principal investment is paid back and 49% of profits after that until it hits a theoretical cap”. Further, Microsoft has obtained the rights to resell OpenAI’s software program to its personal clients by way of Azure and use it for its search engine Bing and apps like Word and Outlook.
Source: economictimes.indiatimes.com