OpenAI Reaches $1 Billion in Annual Revenue with ChatGPT’s Success
As businesses continue to embrace the technology behind ChatGPT, the generative AI bot that sparked a surge in artificial intelligence investment, OpenAI is making steady progress towards achieving $1 billion in annual revenue.
The Microsoft Corp.-backed startup earns about $80 million a month in revenue, a person briefed on the matter said, asking to speak on the condition of anonymity for undisclosed figures. The Information first reported on OpenAI’s earnings, including that it will lose about $540 million in 2022 while developing GPT-4 and ChatGPT. A representative for the startup did not immediately respond to requests for comment outside normal business hours.
OpenAI is considered one of several companies at the forefront of generative artificial intelligence, able to create content from videos to poetry with a few simple user commands. Since debuting its bot in November, OpenAI has worked with companies from startups to large enterprises to incorporate the technology into their business and products.
This month, it launched an enterprise version of ChatGPT with added features and privacy protections, the startup’s most significant effort yet to attract a wide range of business customers and grow revenue from its best-known product.
The launch of ChatGPT Enterprise is a step forward in OpenAI’s plans to monetize its ubiquitous chatbot, which is hugely popular but very expensive to run because strong AI models require a lot of computing power. The San Francisco-based startup has already taken steps to monetize ChatGPT, such as selling a premium subscription and offering companies paid access to an API that allows developers to add the chatbot to other apps.
