AI: the African opportunity
In 2021 the London-based Lloyd’s Register Foundation ran a survey that sought to assess how optimistic people around the world are about the potential of artificial intelligence (AI) to improve their lives.
After its release in November 2022, OpenAI’s ChatGPT established itself as the fastest-growing platform in history. The company’s financial destiny, according to a recent news report by Analytics India Magazine, has, however, sparked concerns. The research suggests that by the end of 2024, the company may declare bankruptcy.
The report indicates that concerns about the feasibility of OpenAI’s intention to register for a trademark on GPT led to predictions that users could eventually stop using it. According to the report, fewer people used ChatGPT in June and July than they did in May. According to SimilarWeb data as of August 3, ChatGPT traffic has decreased for a second time in a row after falling by 9.6 per cent in July and 9.7 per cent in June. Notably, the number of users fell by 12 per cent in July, from 1.7 billion in June to 1.5 billion.
The report said that some of this loss is attributed to API (Application Programming Interface) cannibalisation, where employers forbade employees from using ChatGPT for business-related activities but permitted the large language model (LLM) to be incorporated into other workflows.
According to media reports, running ChatGPT costs OpenAI about $700,000 per day. While recent investors like Microsoft cover these costs, continuing to incur such costs in the absence of revenue could be harmful.
The latest trademark filing for “GPT-5” by OpenAI and its ongoing model training initiatives demonstrate the company’s commitment to making progress in this field. Despite these efforts, the report warns that OpenAI may be in financial trouble by the end of 2024 if more funding is not quickly secured.
In the midst of these advancements, OpenAI has faced further difficulties with Apple’s anticipated entry into the market for AI-powered chatbots and Elon Musk’s assertions that his AI firm xAI is superior. Musk, a co-founder of OpenAI, criticised the organisation for its ties to Microsoft and its approach to developing artificial intelligence.
Formerly a nonprofit venture, OpenAI has transformed into a “capped-profit” organisation, obtaining $10 billion from Microsoft to support its expansion while striving to balance its original non-profit objective. Sam Altman, the business’s chief executive, has stated that there are no immediate plans for the company to go public because of uncertainty on whether decisions involving superintelligence will meet investor expectations.
