OpenAI Threatened with Bankruptcy, Loss of Rp 81.5 Trillion This Year

"OpenAI Threatened with Bankruptcy, Loss of Rp 81.5 Trillion This Year"

"Dream - ChatGPT is currently one of the most popular generative AI services in the world. Who would have thought that its creator company, OpenAI, is projected to suffer significant losses this year, even facing bankruptcy. According to a recent report from The Information, OpenAI's financial condition has been revealed through unpublished internal financial data and various industry analyses."

"Since its establishment in 2015, OpenAI has received funding in seven rounds, totaling more than USD 11 billion or approximately Rp 179.069 trillion. Currently, the company led by Sam Altman has a valuation of USD 80 billion or equivalent to Rp 1.301 trillion."

OpenAI Threatened with Bankruptcy, Loss of Rp 81.5 Trillion This Year

The translation of "Pendanaan Terakhir dari Microsoft" to English is "Latest Funding from Microsoft".

The last funding received by OpenAI came from Microsoft, amounting to USD 10 billion or equivalent to Rp 162.7 trillion. The deal reportedly includes a profit-sharing of 75% and 49% equity in the company. In return, OpenAI gains access to Azure cloud servers at a more affordable cost.

High Operational Costs But Low Revenues.

The operational costs of running an AI company are very high. According to a report from The Information, OpenAI is not generating enough revenue and is expected to incur an operational loss of USD 5 billion (around Rp 81.5 trillion) by the end of the financial year.

"It was reported that OpenAI spent around USD 7 billion or equivalent to Rp 114 trillion to train and perform inference on large language models (LLM). In addition, they also allocated USD 1.5 billion or around Rp 24.4 trillion to pay employee salaries. According to other analysts, OpenAI spends about USD 700,000 per day (Rp 11.4 billion) on the operations of ChatGPT, primarily due to the AI server costs from Nvidia. This information was reported by PC Gamer on Wednesday, July 31, 2024."

"OpenAI faces two main challenges. First, they have a grand ambition to be the first company to launch artificial general intelligence (AGI), which is claimed to have intelligence equivalent to that of humans. This project certainly requires a very large amount of funding."

The translation of "Persaingan Makin Ketat" to English is "Competition is Getting Tougher".

"Moreover, OpenAI also has to compete with other large companies such as Anthropic, Amazon, Google, Meta, and others. Although ChatGPT is currently the most recognized AI service, the revenue generated by OpenAI is increasingly declining due to intense competition."

The translation of "Terancam Bangkrut" to English is "Threatened with Bankruptcy".

According to a report from The Information, OpenAI may run out of funds in the next 12 months and is at risk of bankruptcy unless they can raise more funding. Some analysts predict that the costs for training AI models and production will decrease in the future.

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