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| OpenAI CEO Sam Altman |
OpenAI has reached its annual recurring revenue (ARR) of $10 billion up from around $5.5 billion last year, one of the company's insider confirmed this information. This achievement follows two and a half years since the debut of its widely used ChatGPT chatbot.
The revenue growth is boosted through the company’s consumer products, ChatGPT business products, its application programming interface (API), income from Microsoft licensing agreements and one-off deals that are significant.
This shows that there has been strong demand for OpenAI's products and services. Currently, the company is having 500 million plus weekly active users and 3 million subscribing business customers.
In addition to that, the AI company secured $40 billion funding round, led by SoftBank, in March, making it be valued at $300 billion. The funding round is the largest private tech deal on record.
Despite all these financial growths, OpenAI reported a $5 billion loss last year. The company blames heavy investments in expansion as the cause of the lost.
In addition to that, the company also mounted some pressure on itself to quickly increase revenue. The company spends billions of dollars annually on attracting top talent for its AI development and acquiring the critical infrastructure needed to train and operate its AI systems.
The company is currently supported by investors Japan’s SoftBank, Altimeter, Microsoft, Thrive, and Coatue. While OpenAI has not revealed its operating costs or its progress toward profitability, the company is said to be targeting $125 billion in revenue in 2029, and $12.7 billion by the end of 2025.
