ChatGPT is the biggest buzz in the present scenario. OpenAI, which is backed by Microsoft and known for creating the popular AI chatbot ChatGPT, reportedly saw a significant increase in losses last year, reaching almost $540 million, and these losses are projected to continue to grow. The Information reported that OpenAI’s losses doubled during the development of ChatGPT and the recruitment of key talent from Google.

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According to the report, the newly disclosed figure highlights the high expenses OpenAI incurred for training its machine-learning models prior to offering access to the chatbot. OpenAI unveiled its subscription service, ChatGPT Plus, in February of this year, which is now available for a monthly fee of $20.

Despite potential revenue growth, the report notes that OpenAI’s losses may continue to increase due to the anticipated expansion of AI technology usage and development of new software versions. OpenAI CEO, Sam Altman, has reportedly discussed plans to raise up to $100 billion in the coming years to fund the company’s pursuit of artificial general intelligence (AGI) capable of improving its own capabilities.

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On Saturday, Elon Musk, an early investor in OpenAI and CEO of Twitter, tweeted, “That’s what he (Altman) told me,” referencing Altman’s purported plan to raise up to $100 billion for OpenAI’s AGI development. Despite his previous criticisms of OpenAI, Musk recently founded a new company called X.AI, focused on promoting AI in the era of ChatGPT. Musk was an initial investor in OpenAI, contributing $100 million, but later divested from the company.

Over the past few months, ChatGPT and GPT-4 have gained immense popularity worldwide. OpenAI reportedly completed a share sale, raising over $300 million and achieving a valuation between $27 billion and $29 billion.