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AI Businesses

ChatGPT Owner OpenAI Projects $1 Billion In Revenue By 2024 32

OpenAI, the research organization co-founded by Elon Musk and investor Sam Altman and backed by $1 billion in funding from Microsoft, expects $200 million in revenue next year and $1 billion by 2024. Reuters reports, citing "three sources briefed on OpenAI's recent pitch to investors": OpenAI was most recently valued at $20 billion in a secondary share sale, one of the sources said. The startup has already inspired rivals and companies building applications atop its generative AI software, which includes the image maker DALL-E 2. OpenAI charges developers licensing its technology about a penny or a little more to generate 20,000 words of text, and about 2 cents to create an image from a written prompt, according to its website.

A spokesperson for OpenAI declined to comment on its financials and strategy. The company, which started releasing commercial products in 2020, has said its mission remains advancing AI safely for humanity. In a taste of what's to come, startups including Synthesia and Jasper, the latter having relied on OpenAI's tech, have drawn Fortune 500 companies to use their video-generation or AI copywriting tools, according to their websites. OpenAI has also attracted attention as an AI provider and potential Google search competitor, with ChatGPT answering queries for more than 1 million users so far.

A "capped-profit" structure that OpenAI created in 2019 also represented an unusual restriction for venture capital. OpenAI wanted to safeguard its mission by limiting backers' returns to 100 times their investment, or less in the future. Others may be doubling down. Microsoft this year has looked at adding to its stake, two other sources told Reuters and the Wall Street Journal previously reported. Its hope is to drive business for Microsoft's cloud as more enterprises embrace AI.
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ChatGPT Owner OpenAI Projects $1 Billion In Revenue By 2024

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  • by WankerWeasel ( 875277 ) on Thursday December 15, 2022 @07:53PM (#63134168)

    Aaarg, now we're gonna have to hear from the Musk Fanboys how he invented it and he's the one that created all their technology himself.

  • by devslash0 ( 4203435 ) on Thursday December 15, 2022 @07:56PM (#63134176)

    In order to use ChatGPT you've got to provide and verify your phone number (via a one-time text code). For me that's one step too far since it's obvious that they are going to use it for marketing purposes later.

    • by lpq ( 583377 ) on Thursday December 15, 2022 @08:30PM (#63134230) Homepage Journal

      How can they market using that if you have your phone ignore "Unknown callers"? Even if you don't do that, after they call you once, that caller goes into the ignore list and you never hear from them again.

      They don't accept land-lines or VoIP numbers either, which is bothersome. If it was about ability to send a txtmsg, VoIP supports that, but they still refuse to accept that.

      Their calling themselves "Open" is misleading, since they aren't open in any way -- close source, closed algorithms, closed learning base. They won't let you compile it yourself, or use your own training input, but they control all facets of your usage. Basically it's a standard close-source, proprietary company. Completely worthless to any ethical company, which isn't say much these day.

      • They can market that you have your own phone number as opposed to sharing a house phone. They know it's a personal line and not a line shared with other members of the household because shared lines (be they landline, VoIP, or wireless home phone) are usually voice-only, whereas personal lines are more likely to support receiving SMS. Therefore you are well enough off financially not to have to cut costs by using a shared line.

        • by lpq ( 583377 )

          One of the numbers I tried was a VoIP that took SMS -- they rejected that. So its not just about accepting SMS.

          These days, who shares a phone line (at least in the US)?

          • by tepples ( 727027 )

            These days, who shares a phone line

            Parents may share a house phone with a teen who isn't yet old enough to have a job, let alone their own phone. Also largely older subscribers may have initially obtained a cell phone not as a landline replacement on an unlimited plan but as a pay phone replacement on a pay-as-you-go plan for relatively urgent calls while out. Having a cell phone number means OpenAI can market that its customers are willing to spend money either on an unlimited plan or on the 2FA every time the customer logs in. Also employe

            • by lpq ( 583377 )

              When I needed a cell phone number to validate an account -- they told me to borrow a friend or a family member's phone.
              Not the type of validation you think OpenAI is looking for.

              • by tepples ( 727027 )

                That works unless the friend or family member is also a user of OpenAI services. I expect that as use of OpenAI services becomes more widespread, there will be circles of friends without enough subscribers to unlimited SMS to go around.

      • It wouldn't be ChatGPT who's calling you. They'd sell of your number to hundreds/thousands of other marketers. Good luck trying to block them all.

        • by lpq ( 583377 )

          By default, unless they are in my phonebook, they are blocked.

          It will show that the unknown number and who it was, was blocked, so I can enable it
          in the unlikely chance i want calls from them in the future, but generally such calls don't wring through
          and are auto-ignored.

          • by lpq ( 583377 )

            You said: "Good luck trying to block them all."

            That's the great thing about apple's block list -- by default, they are already blocked. They need to in my
            personal phonebook to get through.

      • 'How can they market using that if you have your phone ignore "Unknown callers"?'

        It's an identifier that can be used to collate other data.

  • So they're going to sell generated content for a penny for 20,000 words.

    1 Get people will pay that to fill their shitty spam sites with crap content (being inaccurate doesn't matter) so they can attract users
    2. sell ads
    3. PROFIT!

    As if the internet isn't already +90% shit .... just look at all the binspam in the firehose.

  • by systemd-anonymousd ( 6652324 ) on Thursday December 15, 2022 @08:12PM (#63134204)

    Time for this greentext again

    >Elon Musk founded OpenAI because it was apparent that next-gen AI requires $1M+ of compute time per model, and he felt that normal people should have access to enterprise level AI. Tools in the hands of normal people would spur innovation and balance the playing field.
    >Eventually GPT-2 got massively popular and Sam Altman saw dollar signs. He delayed its release and setup a paywall system, announcing GPT-3 would be trained on even more gorillians of scraped data. They started making blog posts about how the most ethical path forward was one that, purely coincidentally, forced people to join waitlists for the privilege of giving money to an AI-as-a-service endpoint. And by the way, all your requests would be monitored to make sure they're not politically incorrect. If you're using their AI to generate offensive content they'll cut your access and ruin your entire project. Somewhere around here Elon Musk left the board. He's since criticized their 180
    >Now we have DALL-E 2, which is even harder to gain access to than GPT-3's playground and has even more potential for violating their DEI and equity terms of service.
    >OpenAI is now valued in the billions or tens of billions range (Microsoft alone has $1B invested in it), and they're powering Microsoft's Github Copilot using models trained on open source code, paywalled of course, and are soon going to announce a monthly fee to use it. They've stopped releasing ALL models and weights and are now just a corporation preventing normal people from having access to powerful AI.

  • OpenAI, the research organization co-founded by Elon Musk and investor Sam Altman and backed by $1 billion in funding from Microsoft, expects $200 million in revenue next year and $1 billion by 2024.

    s/expects/wishes for/g

  • by 93 Escort Wagon ( 326346 ) on Thursday December 15, 2022 @08:35PM (#63134244)

    As some of us had already speculated - all the ChatGPT "news" we've been seeing these past few weeks appears to be PR, pushed by the company because its current leadership is trying / hoping to cash in, in the near future.

    • by Anonymous Coward
      or because its awesome technology and this is a technology website
  • Think of the children! /s
  • I'd pay for it if they kept going down.
    "We're sorry, we're over capacity."
    "undefined"
    What is this, a website designed by children? Do they even monitor for these conditions?

  • by kiviQr ( 3443687 ) on Thursday December 15, 2022 @10:01PM (#63134360)
    Check with Alexa and friends - they have no clue how to monetize voice assistant. ChatGPT is cute toy that exists in it's own paralel universe (it makes up facts/citations).
  • by Barny ( 103770 ) on Friday December 16, 2022 @12:24AM (#63134498) Journal

    And so nice of them to share that with the wonderful creators of content they appropriate for training their models.

    Lucky we didn't go down the path of just scraping data wholesale and then claiming it's covered by fair use.

  • It will be a shame when they inevitably start forcing ads and paid content within the results. It's inevitable because always.

Real programmers don't bring brown-bag lunches. If the vending machine doesn't sell it, they don't eat it. Vending machines don't sell quiche.

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