OpenAI is in the red and is expected to have debt of about 770 billion yen in 2024

OpenAI's flagship product, ChatGPT, has many users and its management seems to be solid. However, The Information, an overseas media outlet that obtained internal documents from the company, reported that 'OpenAI may have $5 billion (about 770 billion yen) in debt by 2024.'

Why OpenAI Could Lose $5 Billion This Year — The Information
https://www.theinformation.com/articles/why-openai-could-lose-5-billion-this-year

OpenAI training and inference costs could reach $7bn for 2024, AI startup set to lose $5bn - report - DCD
https://www.datacenterdynamics.com/en/news/openai-training-and-inference-costs-could-reach-7bn-for-2024-ai-startup-set-to-lose-5bn-report/

Developing AI and operating a service requires two types of computational processes: 'learning,' which creates an AI model, and 'inference,' which inputs data into the AI model and outputs the processing results. The machine specifications required for learning and inference vary depending on the scale of the AI. AI models such as GPT-4 and GPT-4o operated by OpenAI are very large-scale models and require high-spec machines for learning and inference.

According to information obtained by The Information, OpenAI has rented 350,000 'AI processing servers built using NVIDIA GPUs 'A100'' from Microsoft, of which 290,000 are used for processing ChatGPT. Microsoft is renting A100-equipped servers to OpenAI for about $1.3 (about 200 yen) per hour, and it is estimated that rental fees will reach about $4 billion (about 620 billion yen) in 2024 alone.

In addition, OpenAI plans to spend about $3 billion (about 470 billion yen) on training AI models in 2024 alone, and labor costs in 2024 are estimated to be about $1.5 billion (about 230 billion yen). In total, OpenAI's expenditures in 2024 will be about $8.5 billion (1.3 trillion yen).

On the other hand, OpenAI's monthly revenue is estimated at $283 million (about 44 billion yen) and its annual revenue is estimated at $3.5 billion to $4.5 billion (about 540 billion to 700 billion yen). In other words, if we calculate the difference between expenditures and revenues, OpenAI will have a maximum debt of about $5 billion (about 770 billion yen) at the end of 2024.

In addition, OpenAI released the AI model 'GPT-4o mini' that can return high-quality responses with less processing than before on July 18, 2024. The above estimates are as of March 2024, so it is possible that expenditures will be lower than estimated.

OpenAI releases free AI model 'GPT-4o mini', supports multi-modal image and voice input - GIGAZINE

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