 "OpenAI Sam Altman is great at raising funds, something that has helped them position OpenAI's services as a great source of revenue. Image Credit: Reuters")
OpenAI’s financial status remains somewhat opaque, but recent reports indicate significant growth in its annualized revenue.
According to a Wednesday report by The Information, OpenAI’s annualized revenue doubled over the past six months, reaching $3.4 billion.
This figure, as explained by the publication, is calculated by multiplying the previous month’s revenue by 12. CEO Sam Altman reportedly shared this revenue milestone with the staff, highlighting a rise from $1.6 billion at the end of last year and $1 billion a year ago.
The bulk of OpenAI’s revenue comes from its subscription-based version of ChatGPT, which provides higher messaging limits for a minimum fee of $20 per month. Additionally, revenue comes from developers who pay to integrate OpenAI’s large language models into their applications and services.
A notable $200 million annually comes from a partnership with Microsoft, which gives OpenAI a portion of sales from its large language models used by Azure customers, Microsoft’s business-focused cloud computing platform.
Despite these impressive figures, an OpenAI spokesperson informed The Information that some financial details were “inaccurate,” though they did not specify which details were disputed.
In related news, Apple recently announced a collaboration with OpenAI to integrate ChatGPT into its operating systems for iPhones, iPads, and Macs. This integration will enable Siri to utilize ChatGPT for answering questions. As for the financials, reports suggest that OpenAI is not getting paid for the services, nor is it paying Apple to feature on their platform.
Impact Shorts
More ShortsOverall, while OpenAI’s exact profitability remains uncertain, the company is clearly experiencing substantial revenue growth, driven by its subscription services, developer integrations, and strategic partnerships like the one with Microsoft.