OpenAI's Revenue Forecasts Rocket to $11.6B Next Year

Published Date::29/09/2024

OpenAI, the San Francisco start-up behind ChatGPT, is making billions from its chatbot and expects to make even more in the coming years. But how much is it losing?

OpenAI, a leading artificial intelligence research laboratory, has been circulating financial documents with potential investors, revealing a significant surge in revenue. According to the documents, OpenAI's monthly revenue hit $300 million in August, up 1,700 percent since the beginning of 2023. The company expects about $3.7 billion in annual sales this year and estimates that its revenue will balloon to $11.6 billion next year.

However, the documents also reveal that OpenAI expects to lose roughly $5 billion this year, after paying for costs related to running its services and other expenses like employee salaries and office rent. This number does not include paying out equity-based compensation to employees, among several large expenses not fully explained in the documents.

OpenAI has been experiencing rapid growth, but has lost a number of important executives and researchers in the past few months. The fundraising material also signaled that OpenAI would need to continue raising money over the next year because its expenses grew in tandem with the number of people using its products.

About 350 million people used OpenAI's services each month as of June, up from around 100 million in March. Most of this growth has come from the continuing popularity of ChatGPT, which was released in November 2022. The documents show a spike in growth after ChatGPT began allowing people to use the service without creating an account or logging in.

Roughly 10 million ChatGPT users pay the company a $20 monthly fee. OpenAI expects ChatGPT to bring in $2.7 billion in revenue this year, up from $700 million in 2023, with $1 billion coming from other businesses using its technology.

FAQS:

Q: What is OpenAI's expected revenue for next year?

A: $11.6 billion

Q: How much does OpenAI expect to lose this year?

A: $5 billion

Q: What is the main source of OpenAI's revenue growth?

A: The continuing popularity of ChatGPT

Q: How many people use OpenAI's services each month?

A: About 350 million

Q: How much do ChatGPT users pay per month?

A: $20

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