ChatGPT is heading towards bankruptcy, according to a report published by Analytics India Magazine, the data shows a decline in its user base with the highest in May, 1.9B users to 1.5B in July. With this pace, the company is estimated to go bankrupt by the end of 2024.
Going by the media reports, ChatGPT uses $700,000 a day, while they are backed by investors like Microsoft, which cover their costs, if it continues in the same way without generating revenue, bankruptcy will become inevitable.
One of the major reasons for this downfall is API Cannibalisation, which means that the companies are prohibiting the use of ChatGPT by their employees for work, but are allowing them to use the API (Application Programming Interface) for leveraging large language model (LLM).
The lack of NVIDIA GPUs and Elon Musk’a xAI is also pushing Chat GPT makers towards downfall. The new models need GPUs to train and handle complex mathematical calculations and the company has even filed for a trademark on GPT-5; if it fails to get more funding or make the company profitable, the company might have to file for bankruptcy. Elon has also jumped into the AI arena and has even bought 10,000 GPUs.