The Information: OpenAI may lose $5 billion this year and burn out funds within a year

According to The Information, OpenAI, the developer of ChatGPT, may face a loss of up to $5 billion in 2024 and face the risk of running out of funds in the next 12 months.

The Information cited previously undisclosed financial data and sources familiar with the company's business in its report, stating that OpenAI expects to invest approximately $7 billion in artificial intelligence training and an additional $1.5 billion in employee staffing. This expenditure far exceeds its competitors, such as Anthropic supported by Amazon, which is expected to burn $2.7 billion in funds by 2024.

The report states that OpenAI's massive spending may force the company to seek funding again in the next 12 months. According to Tracxn's data, OpenAI has completed seven rounds of financing to date, raising over $11 billion, with the most recent being an undisclosed private funding round with ARK Investment Management in April.