The OpenAI logo is seen on a mobile phone in front of a computer screen displaying output from ChatGPT, on March 21, 2023 (AP)

A report published in Analytics India Magazine warned that Artificial Intelligence company OpenAI may go bankrupt by the end of 2024 if it doesn't generate enough profit soon.

The report explained that while Sam Altman's company spends almost $700,000 per day to run AI studio ChatGPT, Microsoft and several other investors are covering these costs at their own expense.

"Microsoft’s $10 billion investment in OpenAI is possibly keeping the company afloat at the moment," the report indicated.

"But on the other hand, OpenAI projected an annual revenue of $200 million in 2023, and expects to reach $1 billion in 2024, which seems to be a long shot since the losses are only mounting," it explained, highlighting that in May, OpenAI’s losses doubled to $540 million since it launched ChatGPT.

The article pointed to the decreasing number of user visits to ChatGPT and referred to SimilarWeb statistics, which revealed that after reaching a record high of 1.9 billion user visits in May this year, the generative AI chatbot saw 1.7 billion in June and just 1.5 billion in July.

The AI studio would also bump into Elon Musk's alternative chatbot.

"Interestingly, his idea of building a ‘TruthGPT’, which is not as politically biased as ChatGPT, was found interesting by a lot of people," Analytics India Magazine's report added.