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One year after losing $5 billion, OpenAI is reporting $10 billion in annual recurring revenue, reports CNBC, due to revenue from ChatGPT business products. That number doesn’t include one-time deals or its licensing agreement with Microsoft (MSFT).
Those numbers are not that surprising, after the company said last week that it had increased its paid user base by 50% this spring, from two million in February to three million by the end of May. That was largely from business products like ChatGPT’s Enterprise, Team, and Edu, launched in 2023.
In March it closed a $40-billion fundraising deal, with a valuation of $300 billion, making it one of the largest private companies in the world. Its forecast is rosy: this year it expects to triple its revenue over 2024’s numbers, to $12.7 billion. That said, it’s not expected to be in a cash-positive position until 2029, with projected revenue by then of $125 billion. The high costs of data centers and GPUs will likely weigh the company down in the meantime.
Paid subscriptions constitute 75% of OpenAI’s revenue. A ChatGPT Pro subscription costs $200 a month for access to its most sophisticated models.
In late May, OpenAI announced a partnership with former Apple (AAPL) designer Jony Ive to create 100 million tiny AI devices that CEO Sam Altman believes will somehow change how all consumers interact with technology. He expects them to bring in $1 trillion in revenue. The first version of the hypothetical device is expected to ship in late 2026.