One of the most famous AI projects, OpenAI, suffered a $5 billion loss in 2024. At the same time, the developer of ChatGPT is in great demand from users, which cannot be said about other startups.
OpenAI is currently negotiating additional investments, which may include Apple.
According to the latest research According to RAND Corporation analysts, 8 out of 10 artificial intelligence projects fail.
The report mentions at least 5 reasons for unprofitability, including the main one— founders’ lack of understanding of the problem their technology is supposed to solve. Also, startup founders lack lack of adequate data for effective training of the AI model, which leads to erroneous results that drive users away from services.
Many startups’ funds are spent on expensive infrastructure and resources, which can reduce the training time of the model. AI companies can also suffer from legal claims, such as copyright infringement.
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