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ChatGPT soon bankrupt? Cost explosion due to high energy costs

08/15/2023 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS

Experts warn that OpenAI is at risk of bankruptcy due to the high fixed costs for the chatbot ChatGPT. The company's user numbers plummeted in the summer. CEO Sam Altman had already pointed out the chatbot's high operating costs in December 2022, which have risen to $700,000 a day. Despite these costs, the chatbot is not yet profitable.

OpenAI's losses doubled to $540 million in May 2023. A Microsoft investment of ten billion dollars is helping to stabilize the situation for now. However, it is unclear how long this financial support will last.

In addition, OpenAI is suffering from a decline in user numbers. Chatbot ChatGPT saw a twelve percent drop in users within a month. The number of users dropped from 1.7 billion in June to 1.5 billion in July, according to SimilarWeb.

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