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OpenAI Revenue Surges 1700% Amid $7B Fundraise

With a 1700% increase in its monthly revenue since early 2023, OpenAI can boast of being a true success story. Skillfully riding the wave of generative AI, the California startup assures that its finances are in excellent shape and is preparing the ground to secure a sizeable fundraising round. OpenAI is preparing to raise funds in a new financing round, and financial documents examined by the New York Times provide a more detailed insight into the company's financial situation. We learn that its monthly revenues reached $300 million in August, an increase of 1700% since the beginning of 2023. The company also projects annual sales of about $3.7 billion this year.

OpenAI Revenue Surges 1700% Amid $7B Fundraise
Source: Depositphotos

Furthermore, OpenAI estimates that its turnover will reach $11.6 billion next year and no less than $100 billion in 2029, which would roughly correspond to the current annual sales of Nestlé or Target. The objective is clear: to demonstrate its firepower to investors and secure a fundraising of nearly $7 billion as hoped earlier.

Investors are Lining Up

To date, OpenAI has amassed a substantial sum. Microsoft has injected more than $13 billion into the company and has become its largest investor. The next funding round – led by Thrive Capital – could attract other investors, including Apple, Nvidia, Tiger Global, and MGX, a technology investment company owned by the United Arab Emirates. To attract this impressive group, OpenAI is offering transaction structures that could be described as unusual to investors.

Microsoft and OpenAI extend partnership

Source. Microsoft

OpenAI Faces Leadership Shake-up Amid Restructuring Plans

However, nothing is set in stone yet, and things could well change: the company was in the spotlight last week after the departure of its CTO, Mira Murati, and two other key members of the research team, Bob McGrew and Barret Zoph. While their motivations are unknown, rumors are rife, and one of them could be the real cause of this reorganization.

The startup thus plans to restructure to achieve its goals and complete this fundraising. It would thus become a for-profit company. Since 2018, the company has been governed by a capping system to raise billions of dollars to develop its generative AI services.

A Gradual Increase in ChatGPT Subscription

In the meantime, OpenAI is looking to replenish its coffers by all means. And one of the hypothetical solutions could be increasing the subscription to its ChatGPT service. Launched in November 2022, the tool has seen unprecedented interest: about 350 million people – compared to about 100 million in March – were using its services each month from June, and by mid-September, it had more than one million paying users for its professional products, ChatGPT Enterprise, Team, and Edu.

According to the NYT, the company has about 10 million ChatGPT Plus users. A figure that OpenAI intends to increase further, as demonstrated by Sam Altman’s strategy in recent months. He is counting on this base to ensure substantial income.

Moreover, currently at $20 per month, the Plus subscription is expected to increase by $2 by the end of the year, with the company planning to aggressively raise it to $44 over the next five years. For now, nothing is set. We’ll have to wait for the official announcement of the funding round to learn more.

Frequently Asked Question

What role does ChatGPT play in OpenAI's overall revenue?

ChatGPT is not just a product but a cornerstone of OpenAI’s business model, driving substantial revenue growth and shaping the company’s market presence in the AI landscape.

How does OpenAI's revenue growth affect its relationship with Microsoft?

OpenAI’s revenue growth not only strengthens its partnership with Microsoft but also creates new opportunities and challenges that will shape their future collaboration in the competitive AI landscape.

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