OpenAI is expected to reach $2 billion in revenue – and quickly

Just seven years after its founding, OpenAI’s annual performance metric – a measure of monthly revenue multiplied by 12 – hit the $2 billion revenue mark in December 2023, and two people know it he told the Financial Times.. This puts the AI ​​startup among a handful of companies, including Google and Meta, that have made billions of dollars in just ten years of existence.

For Google, it took five years to reach its first billion in revenue, According to to a report by City Index, a financial services company. Meanwhile, Meta reached its first billion in six years. In fact, one of the companies that made its first billion the fastest wasn’t a Massive Tech name at all – Booking Holdings, the owner of Booking.com and Kayak, generated $1 billion in just three years.

The beginnings of OpenAI

OpenAI launched in 2015 started as a non-profit organization focused on building software that could replicate human intelligence and capabilities – what the company now defines as “general artificial intelligence”; was founded by a group of Silicon Valley titans including Sam Altman, Elon Musk, Peter Thiel and LinkedIn co-founder Reid Hoffman.

In November 2023, the San Francisco-based company launched its ChatGPT chatbot, which catapulted the company to massive popularity and spurred demand for generative AI from companies, countries, and industries. The launch of ChatGPT also highlighted the technology’s rapidly growing potential for work-life integration. According to him, OpenAI is focused on enterprises over 92% of Fortune 500 companies now exploit ChatGPT. According to the startup, the chatbot also has 100 million weekly users.

Running AI models is very exorbitant

It is true that profitability is the most significant thing. As the Financial Times noted, building and running vast AI models is exorbitant, and expenses are expected to outpace revenue growth as OpenAI develops more powerful models. To get an idea of ​​the costs involved in building vast AI models, Sam Altman reported in the Wall Street Journal last week I want to collect $7 trillion in financing its AI chip project.

OpenAI also has a profit-sharing agreement with Microsoft, which has invested billions of dollars in the maker of ChatGPT. In October, Microsoft reported that 18,000 customers purchased OpenAI software through its Azure cloud platform.

More broadly, tech giants are beginning to commercialize their AI products. Last week, Google announced that its most advanced artificial intelligence system, Gemini, can be accessed via a $20 per month premium subscription. Meanwhile, Microsoft’s Copilot AI assistant starts at $30 per month.