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📢 OpenAI's Financial Struggles: A Closer Look 📢 OpenAI, a leading player in the AI landscape, might face bankruptcy within the next 12 months. Despite generating $3.5 billion in revenue, the company's $7 billion expenditure on AI model training and $1.5 billion on staffing has resulted in a projected $5 billion loss. Here's a breakdown of the situation: - Operational Costs: $700,000 per day to keep ChatGPT running. - Revenue Generation: $2 billion annually from ChatGPT and $1 billion from LLM access fees. - Funding: Over $11 billion raised across seven rounds, with a current valuation of $80 billion. - Capacity: Nearly 290,000 of its 350,000 servers are dedicated to ChatGPT. Despite the challenges, OpenAI remains committed to advancing AGI. However, the financial strain suggests another funding round might be essential to stay afloat. The AI industry is booming, with giants like Microsoft, Apple, and NVIDIA profiting from early investments. Yet, OpenAI’s financial hurdles highlight the immense costs and risks involved in pushing the boundaries of technology. 🔗 Stay informed on this critical development in the AI sector. #Microsoft #Apple #NVIDIA #AI

Microsoft partmers wotj Mistral AI. What does this mean for OpenaI? Former Microsoft employee and now VP of eng reacts. Show hosts Joe (Eng VP) and Jordan (M&A Deal Lead) draw on their rich backgrounds at major tech companies to provide insightful analysis and a sprinkle of humor. 😐 Which companies are most likely to get crushed by ChatGPT? Head over to buff.ly/45tK7Xo to see which companies you should not work or invest in. Time Codes 00:00 Introduction and Microsoft's Partnership with Mistral AI 01:12 OpenAI's Perspective on Mistral AI 03:14 Microsoft's Diversification Strategy 04:18 Implications of Local Data Regulations 05:03 EU Regulations and the Impact on European Media Companies 06:25 Twitter Reactions and Microsoft's Corporate Maneuver 07:22 Sacha Nadella's Qualifications as CEO 08:04 Mark Zuckerberg's Direct Appeals and Founder's Authority 10:23 The Credibility of CEOs Making Direct Appeals 11:30 Performance Comparison of Mistral AI and Other Models #mistral #ai #microsoft #openai #machinelearning https://buff.ly/3IgUEMt

🔥 Hot off the press: OpenAI's valuation is skyrocketing faster than ChatGPT can finish your sentences! 📈 The AI powerhouse is closing in on a mind-bending $6.5 billion funding round, with some serious players joining the party: SoftBank Group: Dropping a cool $500 million 💰 Microsoft: Upping their stake by another $1 billion 💼 Thrive Capital: Leading the pack with $1 billion+ 🦁 But wait, there's more! 🍎 Apple decided to sit this one out. Maybe Siri got jealous? OpenAI's projected numbers are giving Silicon Valley whiplash: 2024 Revenue: $11.6 billion 2029 Target: A whopping $100 billion 🤯 Is this the dawn of the AI gold rush? Time to dust off those machine learning textbooks! 🤖📚 #ArtificialIntelligence #TechInvestment #OpenAI #FundingRound #AIRevolution #SiliconValley #FutureTech #InnovationNews What are your thoughts on this AI investment frenzy? Let's discuss in the comments! 👇

Reality is catching up to big tech and their enthusiasm for AI, with rapidly growing costs, revenues struggling to keep pace and accelerating energy demands and emissions imploding sustainability goals. Recent reporting from the New York Times estimates that OpenAI will lose $5B in 2024, and is seeking additional investment of $7B in the latest round. With a substantial portion of its $13B in Microsoft funding going back to Microsoft to pay for cloud computing services, and its revenue, while growing rapidly, is still dwarfed by the cost of training and delivering ChatGPT services. https://lnkd.in/eamR_rpM At the same time its energy consumption and carbon footprint are exploding with energy estimates for training GPT-4 between 51M - 62M kWH and estimated emissions between 12,456 and 14,994 metric tons of CO2. Moreover, the cost of running GPT-4 is as high as 50x GPT-3. https://lnkd.in/eeCdghZk While I am true believer in the benefits AI can bring to our economies, our companies, our world and ourselves, how we get there matters. It's time to take a hard look at both the profitability and sustainability (safety, too) of our AI deployments and invest the effort into improving our approach. Bigger is not always better. Let's start talking more about efficiency.

What's New to TheStreet... 🔍 Big move in the tech world! Microsoft has stepped down from its observer role on the board of OpenAI, the maker of ChatGPT, amid regulatory scrutiny on both sides of the Atlantic. 🌍🤖 How do you think this change will impact the future of AI development? 💡🤔👇🏻 👉🏻Follow New To The Street for more! #technews #microsoft #openai #airegulation #innovation #businessnews #business #news #newtothestreet

What's New to TheStreet... 🔍 Big move in the tech world! Microsoft has stepped down from its observer role on the board of OpenAI, the maker of ChatGPT, amid regulatory scrutiny on both sides of the Atlantic. 🌍🤖 How do you think this change will impact the future of AI development? 💡🤔👇🏻 👉🏻Follow New To The Street for more! #technews #microsoft #openai #airegulation #innovation #businessnews #business #news #newtothestreet

Somehow, OpenAI doubling its active users in under a year barely made a splash. At least, I've only seen a few posts about it in my feed. Maybe it’s because we've become accustomed to the spectacular success of Sam Altman’s project, so it no longer surprises us. Well, there were 100 million active ChatGPT users per week. Now there are 200 million. That's quite impressive! API usage has also doubled since the release of GPT-4o mini in July. In addition to user growth, the company is showing significant financial success. According to CEO Sam Altman, the company's annual revenue has reached $3.4 billion, which is double compared to the end of 2023 when revenue was $1.6 billion. In reality, these are all truly impressive achievements, and I can only imagine how the company will soar when Apple, Nvidia, and Microsoft invest in a new round of funding for OpenAI - according to The Wall Street Journal, such negotiations are underway. Let's keep following this exciting story! #3asoft #AI #Tech #OpenAI #ChatGPT

We are witnessing the dawn of a new technological revolution powered by Artificial Intelligence. In a world where the global population is declining and the demand for increased productivity is higher than ever, AI emerges as a pivotal solution. While AI models aren’t perfect yet, their speed and intelligence are rapidly advancing. Have you tried the latest version of ChatGPT? At Sky Cliff Portal, we’ve leveraged it to significantly increase the number of companies we cover—without expanding our team. It feels akin to the transformative impact of the railway, the computer, or the Internet, driving unprecedented change and efficiency. The spotlight is on OpenAI. Just a month ago, its shares were trading below a $90B valuation. Today, new offers have already surpassed the $100B mark. According to Bloomberg, this is merely the beginning, with the company completing a $6.5B funding round at a valuation exceeding $150B. If OpenAI continues on this trajectory, it’s set to become the fastest-growing company in the world. Their annualized revenue has more than doubled to $3.4B, underscoring the immense potential and impact of AI technologies. More about OpenAI: https://lnkd.in/eCUWvnJY The Sky Cliff Platform serves as a comprehensive portfolio monitoring solution for the Late-Stage Private Equity Market (pre-IPO), offering independent informational services. Please note that Sky Cliff Professionals does not provide investment or tax advice. Potential investors are advised to seek specialized independent tax and financial advice before investing in any alternative investment. Past performance does not guarantee future returns, and investments involve risks to your capital. #latestage #preipo #secondaries #openai

In 2023, OpenAI seemed like an alchemist, turning lines of code into investors' gold. But in 2024, this magic could turn into a $5 billion loss, dragging the company to the bottom. The main expense item is renting a server from Microsoft. OpenAI uses a cluster of 350,000 Nvidia A100, 80% of which goes to ChatGPT. The rental price is $1.3 per hour per server. Total up to $4 billion per year for hardware alone. Training models are also expensive—about $3 billion, plus $1.5 billion for the salaries of 1,500 employees. Total operating expenses are about $8.5 billion. Revenues have not kept up with expenses yet. ChatGPT brings in about $2 billion per year. Considering other services, total revenue is about $3.5-4.5 billion. The result is losses of $4-5 billion per year. For comparison, competitor Anthropic loses "only" $2.7+ billion annually. Given these costs, OpenAI will need a new investment round in the next 12 months. So, the race for leadership in AI is getting more expensive. Will OpenAI be able to maintain its leadership, or will we see new players? Amazon, Microsoft, Facebook, X, Anthropic, Google, Chinese companies - many are trying to become AI leaders. Who will survive in this crazy arms race of artificial intelligence, where the stakes are growing daily? And what will remain of the winners?

Microsoft ditches OpenAI board observer seat amid regulatory scrutiny ****************************************************************************** Microsoft has given up its seat as a board observer at OpenAI, which has attracted regulatory attention in both the UK and the US, citing the AI startup's marked governance improvements over the last eight months. Tell me more: Apple recently announced plans to integrate OpenAI's chatbot ChatGPT into its devices, and said it would also not take an observer role on OpenAI's board, despite earlier expectations. Instead, OpenAI would host regular meetings with partners such as Microsoft and Apple and investors Thrive Capital and Khosla Ventures.