OpenAI, a prominent AI startup known for its product, ChatGPT, has achieved an annualized revenue of $2 billion by December 2023, as disclosed by sources familiar with its finances.
With the demand for ChatGPT driving its growth, OpenAI is positioned to more than double its revenue by 2025. This estimation is based on customers’ eagerness to adopt OpenAI’s tools as the world embraces the potential of artificial intelligence. This significant milestone places the Microsoft-backed AI startup among the fastest-growing tech companies.
Business customers are increasingly attracted to OpenAI’s generative AI tools, reflecting a rising trend toward adopting AI technologies in various workplace applications. OpenAI’s rapid expansion aligns it with industry giants like Google and Meta, which achieved billion-dollar revenues within a decade of their inception.
Organizations like Google, Meta, and startups in the industry leverage AI in their operations and commercialize it. Last week, Google announced its new AI system Gemini, which users can access through a premium subscription. This suggests promising future returns for AI tool usage.
Despite the burgeoning AI market, CEO Sam Altman has indicated that OpenAI continues to operate at a loss due to the significant expenses associated with constructing and maintaining its models. As the company advances its technologies to more sophisticated levels, expenditures are projected to surpass revenue growth. Consequently, it is anticipated that OpenAI will require tens of billions more in funding to sustain these operations.
“Training expenses are substantial, but that’s deliberate,” Altman told the Financial Times in November.
In light of its success, Altman is seeking avenues to enhance the availability of semiconductors, a critical resource for AI firms aiming to develop cutting-edge models, to reduce OpenAI’s expenses. He posted on X this week: “Building massive-scale AI infrastructure, and a resilient supply chain, is crucial to economic competitiveness. OpenAI will try to help!”
Altman is reportedly engaging in discussions with investors to raise billions for a new chip-making company to satisfy its growing demand for semiconductors. Among those in discussions are Sheikh Tahnoon bin Zayed al-Nahyan from the UAE, Taiwan Semiconductor Manufacturing Company (TSMC), and SoftBank.