OpenAI reportedly earned $300 million in revenue in August, up 1,700% since the start of 2023.
That’s according to a report Friday (Sept. 27) by The New York Times (NYT), citing financial documents seen by the news outlet.
Those documents show that the artificial intelligence (AI) startup expects about $3.7 billion in yearly sales for 2024, and estimates that its revenue will grow to $11.6 billion next year.
However, the company expects to lose roughly $5 billion this year after paying for operational costs, salaries and overhead, the report said. The company has been circulating the documents with potential investors ahead of an upcoming funding round that could value it at $150 billion.
PYMNTS has contacted OpenAI for comment but has not yet gotten a reply.
The NYT report said the funding round could bring in $7 billion, higher than the $6.5 billion previously reported by other outlets. The report also noted that the funding arrives at a critical time for the company, which is seeing substantial growth but also dealing with the loss of several high-profile executives and researchers.
Last week also saw reports that the company was going to restructure its core business into a for-profit benefit corporation that won’t be under the control of its nonprofit board.
According to the NYT, the fundraising material indicates OpenAI would have to keep raising money over the coming year because its expenses are rising in conjunction with the number of people using its products.
The company’s revenues tripled year over year in August, while 350 million people used its services as of June, compared to 100 million in March, a surge driven mostly by the popularity of ChatGPT.
OpenAI anticipates $2.7 billion in revenue from ChatGPT for the year, up from $700 million last year, with $1 billion coming from businesses using the company’s tech. The documents also show that around 10 million people pay the company $20 per month to use ChatGPT. The company plans to raise that price by $2 by the end of the year, and will bring it to $44 over the next five years.
In other AI news, PYMNTS last week explored efforts by OpenAI and other companies to develop so-called artificial superintelligence.
“I’m pretty certain superintelligence will displace most jobs, and not just white-collar but blue-collar jobs as well,” Brandon Da Silva, CEO of ArenaX Labs, a platform for developing AI-driven online gaming experiences, told PYMNTS.
And Matt McMullen, chief operating officer of Realbotix, predicted that “businesses that quickly adopt superintelligence may gain significant advantages in efficiency and innovation, potentially disrupting entire industries.”
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