<p>The AI industry is booming, making major tech companies very profitable. Microsoft, Apple, and NVIDIA are competing for the world&#8217;s most valuable company title. Analysts credit their revenue and profit growth to their early investments in AI technology and its integration into their products and services.</p>
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<p>Ironically, OpenAI, a significant player in AI, might face losses of up to $5 billion in 2024. A recent report shows that the creator of ChatGPT could run out of cash within the next year.</p>
<p>To put things in perspective, OpenAI spends about $700,000 daily to maintain ChatGPT. This cost is expected to rise as the model becomes more advanced. The report highlights that OpenAI is on track to spend $7 billion on training its AI models and another $1.5 billion on staffing, which fairly exceeds its competitors&#8217; spending projections for 2024.</p>
<p>Although OpenAI benefits from discounted access to Microsoft&#8217;s Azure services, its rapid AI advancements are straining its finances.</p>
<p>According to Appfigures, the launch of GPT-4o caused a significant spike in OpenAI&#8217;s ChatGPT revenue and mobile downloads. ChatGPT generates up to $2 billion annually, with an additional $1 billion from access fees, resulting in an estimated total revenue of $3.5 to $4.5 billion per year.</p>
<p>Despite this, OpenAI&#8217;s income barely covers its operating costs. The company has already completed seven funding rounds, raising over $11 billion, and is currently valued at $80 billion. Additionally, 290,000 of its 350,000 servers are dedicated to ChatGPT, indicating it is operating at nearly full capacity.</p>