OpenAI’s Soaring Revenue Shadowed by Billion-Dollar Losses, NYT Report Reveals

Artificial intelligence giant OpenAI is experiencing rapid revenue growth but facing significant financial challenges, according to financial documents reviewed by The New York Times

The San Francisco-based startup’s monthly revenue reached $300 million in August, marking a 1,700% increase since the beginning of 2023. OpenAI projects annual sales of $3.7 billion for this year, with expectations to reach $11.6 billion in 2025.

However, the company is grappling with substantial losses. OpenAI anticipates losing approximately $5 billion this year after accounting for operational costs, employee salaries, and office expenses. This figure doesn’t include equity-based compensation and other major expenses not fully detailed in the documents.

The financial data reveals that ChatGPT is the primary driver of OpenAI’s growth. The company expects the chatbot to generate $2.7 billion in revenue this year, up from $700 million in 2023. Additionally, about 10 million ChatGPT users are paying a $20 monthly subscription fee, with plans to increase this to $44 over the next five years.

OpenAI’s user base has also seen significant expansion, with approximately 350 million monthly users as of June, a substantial increase from around 100 million in March. The company attributes much of this growth to allowing access to ChatGPT without requiring account creation or login.

Despite these positive indicators, OpenAI faces challenges in managing its costs. A huge chunk of the company’s expense, understandably, is computing power, primarily sourced through its partnership with Microsoft, which has invested over $13 billion in the company. OpenAI is currently seeking additional funding, with ongoing discussions to raise $7 billion at a valuation of $150 billion.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

Antimony Resources Drills 4.17% Antimony Over 7.4 Metres At Bald Hill

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Related News

No, ChatGPT Won’t Take Your Job — Not Yet — But Here’s How People Think It Will Change The World

Barely a fortnight into being released into the wild, ChatGPT, the “human-like” AI language model...

Monday, December 12, 2022, 08:45:00 AM

New York Judge Fines Lawyers Who Used ChatGPT To Create Legal Brief

The lawyers who submitted a legal brief that was created using OpenAI’s large language model...

Friday, June 23, 2023, 03:07:00 PM

China Arrests Man Over Release of ChatGPT-Generated Fake News

Today in that’s-probably-not-how-you-use-artificial-intelligence, a man in China has been arrested for reportedly using ChatGPT to...

Thursday, May 11, 2023, 06:14:00 AM

Elon Musk Isn’t Happy About Apple Partnering with OpenAI, Says It’s ‘Creepy’

Elon Musk has threatened to ban Apple (Nasdaq: AAPL) devices at his companies if the...

Tuesday, June 11, 2024, 07:55:59 AM

Annie Altman, OpenAI CEO’s Sister, Tweets About Sexual Abuse Suffered From “Brother” Sam Altman

Trigger warning: sexual abuse In a series of tweets, Annie Altman, the sister of OpenAI...

Friday, October 6, 2023, 03:03:00 PM