Quick overview

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OpenAI achieved $10 billion in annual recurring revenue less than three years after releasing its well-liked ChatGPT chatbot. The figure includes sales from ChatGPT’s business products, consumer goods, and application programming interface (API).

According to an OpenAI representative, this figure does not account for Microsoft licensing income or significant one-time agreements. OpenAI’s annual recurring revenue was approximately $52.5 billion in 2024. A substantial amount of money is required to sustain its explosive growth rates

The San Francisco-based startup lost roughly $5 billion in 2024. A source familiar with the situation, speaking anonymously due to the sensitive nature of the information, stated that OpenAI is also targeting $125 billion in revenue by 2029.

OpenAI secured its largest-ever private tech deal in March, a $40 billion fundraising round. Some of OpenAI’s major investors hold hypergrowth expectations, as evidenced by the company’s valuation of roughly 30 times revenue based on current metrics.

Microsoft, Coatue, Altimeter, Thrive, SoftBank of Japan, and others back OpenAI. The consumer version of ChatGPT launched in late 2022, marking OpenAI’s entrance into the market. The following year, the company began releasing business solutions.