Ather Energy CEO expresses confidence in OpenAI amid bankruptcy report. THIS is what he said…

Ather Energy’s Tarun Mehta expressed confidence on Sunday that OpenAI will manage its situation, in response to a report forecasting potential bankruptcy for the AI research lab in the coming year. The report cited significant daily expenditures, notably around $700,000 (approximately 5.8 crore), dedicated solely to one of its groundbreaking products: the innovative ChatGPT.

In support of his claim, Mehta pointed to notable Indian startups turned established companies, including Flipkart, Meesho, Ola, Paytm, and Swiggy, which, as he highlighted, also went through prolonged periods of burning through substantial funds.

“This post seems to be going around. People are sharing that Open AI might go bankrupt next year because it burns through 5.8cr PER DAY! Yeah, right,” Mehta took to X via his post and attached a screenshot of the report with it.

Mehta, the Ather Energy co-founder and CEO also added, “5.8cr/day is 2000cr/year=$250M/year. Your friendly neighbourhood Swiggy, Meesho, Paytm, Ola, Flipkart have burnt through more of it for months and even years.”

In further elaboration, he noted that many Indian startups have experienced similar capital consumption during their peak periods, and quite a few of them have managed to remain stable and Uber, during its prime, was using ten times the capital for an extended duration.

Additionally, OpenAI stands as one of the most pivotal startups in recent years, boasting a substantial $10 billion funding pipeline, adds Mehta. He confidently concluded, “Rest assured, they will manage the situation, folks.”

To recall, as per the report from Analytics India Magazine, the AI firm headquartered in San Francisco could be facing a potential financial dilemma, potentially leading to bankruptcy by the conclusion of 2024.

OpenAI is currently experiencing a cash depletion, and despite endeavors to monetize GPT-3.5 and GPT-4, the study highlighted.

It also pointed out that the company has not achieved sufficient revenue to reach a break-even point and a progressive decrease in the user community of ChatGPT in recent months was witnessed.



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Updated: 14 Aug 2023, 04:43 PM IST


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