OpenAI Reaches $10 Billion In Annual Revenue

Artificial intelligence (A.I.) start-up OpenAI, which is heavily backed by Microsoft (MSFT), has reported $10 billion U.S. in annual recurring revenue.

The $10 billion U.S. milestone has been achieved less than three years after privately held OpenAI launched the first version of its popular ChatGPT chatbot.

The revenue figure includes sales from the company’s consumer products, ChatGPT business products, and its application programming interface, or API.

The figure excludes licensing revenue that OpenAI receives from Microsoft, as well as one-time deals.

While the $10 billion U.S. revenue milestone is impressive, San Francisco-based OpenAI remains unprofitable, having lost about $5 billion U.S. in 2024.

While OpenAI has said that it is targeting $125 billion U.S. of revenue by 2029, the company has not set a deadline for achieving profitability.

However, the new revenue metrics help to justify OpenAI’s valuation of around $300 billion U.S.

The A.I. start-up closed a $40 billion U.S. funding round in March of this year, which was the biggest private technology deal on record.

OpenAI came to prominence with the release of the consumer version of ChatGPT in late 2022.

Today, the company supports 500 million weekly active users and claims to have three million paying business users.

As a private company, OpenAI’s stock is not traded on a public exchange.