The company OpenAI, based in San Francisco (United States), would have exceeded $2 billion in annual revenue in December 2023, the FT reported.
As of October last year, OpenAI’s revenue was $1.3 billion, according to The Information. But the months of November and December seem to have been marked by a very strong increase in income.
“By 2025, OpenAI’s revenues will have more than doubled to reach $4 billion,” the FT also writes. “The company’s rapid revenue growth places it in the category of fastest-growing companies in Silicon Valley history, joining companies like Google and Meta, which reached $1 billion in revenue in during their first decade.”
From 28 million to 2 billion dollars in turnover in one year
For 2022 alone, OpenAI’s revenues were…$45,000 in the non-profit sector and…$28 million in the for-profit sector.
OpenAI was founded on December 8, 2015 as a non-profit AI research laboratory. But in 2020, the company launched a business division and partnered with Microsoft, with a total investment of $13 billion from Microsoft. It continued its meteoric rise despite the imbroglio of CEO Sam Oltman’s ouster from the board in November last year. And his return.
The number of corporate clients is also increasing. According to Altman, as of November last year, 92% of Fortune 500 companies were using OpenAI products such as ChatGPT and GPT-4.
Antropic, Mistral and Coherent, the competitors are showing up
Their chatbots had 100 million weekly active users at the start of 2023. Consumer and business interest in generative AI like ChatGPT, which can generate text, images, videos and even code, continues to grow .
Besides OpenAI, tech giants like Google and Meta, as well as AI startups like Antropic, Mistral, and Coherent, have entered the generative AI market and launched products.
Google recently announced its new Gemini AI, a premium subscription service that lets users pay $20 per month.
OpenAI is still in the red on the financial side
However, despite exploding turnover, OpenAI is still in the red on the financial side. This is because of the high cost of training AI models. The cost of developing more sophisticated models with better features remains higher than revenue growth.
This is the reason why OpenAI continues to want to raise huge amounts of funds. As Mr Altman told the FT in November last year, “the training costs are enormous. The training expenses are just enormous, but that’s intentional.”
According to the FT, OpenAI was recently valued at $86 billion, almost triple its value in April last year. Meanwhile, Microsoft has integrated OpenAI’s AI products into its own products, with 18,000 customers purchasing OpenAI products through Azure, Microsoft’s cloud platform.
Source: “ZDNet Korea”