OpenAI, the company behind ChatGPT, faces substantial financial challenges due to the immense costs associated with developing and training AI models. To sustain its operations and future research, OpenAI is considering a transition from its nonprofit structure to a for-profit model.
Building a chatbot like ChatGPT requires billions upon billions of dollars. That’s the driving force behind OpenAI’s plans to change how it’s managed. — Changyu Zou/The New York TimesEarly last year, OpenAI raised US$10 billion (RM44.6 billion). Just 18 months later, the company had burned through most of that money. So it raised US$6.6 billion (RM29.4 billion) more and arranged to borrow an additional US$4 billion (RM17.8 billion).
But in another 18 months or so from now, OpenAI will need another cash infusion because the San Francisco startup is spending more than US$5.4 billion (RM24.1 billion) a year. And by 2029, OpenAI expects to spend US$37.5 billion (RM167.4 billion) a year. OpenAI’s accelerating expenses are the main reason the corporate structure of the company, which began as a nonprofit research lab, could soon change. OpenAI must raise billions of additional dollars in the years to come, and its executives believe it will be more attractive to investors as a for-profit company. In many ways, artificial intelligence has inverted how computer technology used to be created. For decades, Silicon Valley engineers designed new technologies one small step at a time. As they built social media apps like Facebook or shopping sites like Amazon, they wrote line after line of computer code. With each new line, they carefully defined what the app would do. But when companies build AI systems, they go big first: They feed these systems enormous amounts of data. The more data companies feed into these systems, the more powerful they become. Just as a student learns more by reading more books, an AI system can improve its skills by ingesting larger pools of data. Chatbots like ChatGPT learn their skills by ingesting practically all the English language text on the Internet. That requires larger and larger amounts of computing power from giant data center
AI Openai Chatgpt Finances For-Profit
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
OpenAI to partner with military defense tech companyThe ChatGPT-maker and Anduril will focus on improving defenses against drone attacks, the companies said in a joint release.
Read more »
OpenAI lancar ciri carian internet percuma, cabar dominasi googleOpenAI lancar ciri carian internet percuma, cabar dominasi google
Read more »
OpenAI confirms ChatGPT outage as global users experience disruption, says working on a fixKUALA LUMPUR, Dec 12 — OpenAI has confirmed that its ChatGPT generative artificial intelligence (AI) chatbot is currently down as users worldwide reported disruptions. In a post...
Read more »
Elon Musk Seeks Court Injunction to Halt OpenAI's For-Profit ConversionElon Musk has requested a US court to prevent ChatGPT-maker OpenAI from converting into a for-profit entity, according to a report from CNBC. This move is the latest in a business dispute between OpenAI and Musk, who co-founded the company in 2015 and later left.
Read more »
OpenAI To Release AI Agent That Can Help You Book Flights & Write CodeThe update is slated to release in January 2025.
Read more »
SoftBank Buys OpenAI Employee Shares for US$1.5b, Boosting ChatGPT CreatorOpenAI is permitting its employees to sell shares worth approximately US$1.5 billion to SoftBank, enabling the tech investor to increase its stake in the company and allowing for employees to exit their shareholdings.
Read more »