OpenAI's Next Funding Round Bring us "GPT-Next"
Michael Spencer
A.I. Writer, researcher and curator - full-time Newsletter publication manager.
Hey Everyone,
OpenAI is projected to incur a financial loss of approximately $5 billion in 2024. How do you absorb such a loss? For the Microsoft backed AGI startup, it’s go even bigger! I’ve come to the conclusion that OpenAI does have a valid path to profitability and in that case it can still be a Generational company.
(?—??For a limited time get a Yearly sub for just $5 a month?— ?).
Key factors contributing to these expenses include the cost of running AI models like ChatGPT, which alone incurs daily expenses of about $700,000, and substantial investments in computational resources and elite engineering talent. OpenAI have over-hired but also over promised in terms of expectations and a variety of AI products still in development.
But momentum and first-mover advantage is still on their side:
Here’s what we know:
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OpenAI is reportedly in talks with investors to raise $6.5 billion at a $150 billion pre-money valuation, according to Bloomberg. While expected to lose between $3.5 Billion and $5 Bn. in 2024 alone, I’m surprised they won’t be able to raise more and they will have to increase revenue substantially in 2025 and 2026 to make it.
OpenAI is trying to figure out the right Enterprise AI tool subscription mix to charge for its bleeding edge products as they are set to release their Strawberry model in about two weeks, later in September.
Anthropic for its part with its own Claude for Enterprise has figured this out already:
Claude Enterprise is $60 per seat with a minimum of 70 seats. That’s a $50K annual commitment for:
ChatGPT now has more than 200 million weekly active users?— twice as many as it had last November.
OpenAI are still growing and they can leverage ChatGPT’s increasing usage to introduce next-gen Generative AI capabilities to the world. All of this is the symbolic “GPT Next”, that does not refer to an actual model or specific product.
OpenAI gets so much traffic for ChatGPT, their approach is to integrate things like SearchGPT and Strawberry into it. Strawberry will be a stand-alone product but will be integrated with ChatGPT, as we have to imagine the likes of Sora and other products will be as well.
ChatGPT is still growing, and especially their Enterprise customers are quite lucrative. 2025 will be the critical year for the startup. They can increase their revenue with shocking growth. OpenAI is the first post-pandemic AI monopoly.
To read the full article go here.
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1 个月Michael Spencer Nice article!!. Thank you.
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