OpenAI Forecast Suggests Five Years Until Profit

OpenAI is reportedly not anticipating to reap yearly profits for another five years.

That’s according to a report Wednesday (Oct. 9) by The Information, citing company financial documents that also show the artificial intelligence (AI) startup could see annual losses of up to $14 billion in 2026.

The revenue forecast showed OpenAI earning $100 billion in 2029, and spending around $200 billion through the remainder of the decade, not counting stock compensation, the report said. The projection shows $44 billion in losses between 2023 and 2028. 

The news comes days after OpenAI announced the completion of a $6.6 billion funding round, bringing its valuation to $157 billion.

The Microsoft-backed company, known for its ChatGPT language model, intends to use the new funding to strengthen its leadership in frontier AI research, bolster its computational capacity and enhance its suite of problem-solving tools. 

ChatGPT has more than 250 million weekly active users worldwide, transforming productivity across a range of industries and ushering in a new generation of AI-powered applications. The company has also been working on developing artificial general intelligence (AGI), or AI that can think and reason like humans.

“The investment comes amid competition in the AI sector, with tech giants and startups vying for dominance in what many consider the next frontier of technological advancement,” PYMNTS wrote last week. “OpenAI’s valuation reflects growing investor confidence in AGI’s potential to revolutionize industries and create new economic opportunities.”

It is a whirlwind period for the company. In addition to the funding round, OpenAI also recently unveiled new products, and saw the unexpected departure of multiple top executives, and announced it had established a $4 billion credit facility with several of the world’s biggest banks.

This flurry of events, PYMNTS noted, highlights the company’s dominance in the AI arms race, possibly accelerating the commercialization of its technology. These developments could also portend a shift in the industry, with OpenAI positioned to fast-track the deployment of AI technologies in spite of its organizational challenges.

“OpenAI’s massive funding round is a game-changer for the AI industry,” Matt Hasan, CEO of aiRESULTS, told PYMNTS. “It’s going to supercharge their research and development, making it tougher for smaller players to keep up. With big names like Microsoft and Nvidia backing them, OpenAI is set to dominate the AI landscape even more.”