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OpenAI expects to 3X revenue in 2025 but Chinese AI firms are heating up

Mar 27, 2025 - cointelegraph.com
OpenAI is projected to significantly increase its revenue to $12.7 billion this year and aims to reach $29.4 billion by 2026, according to Bloomberg. The company, which has a strong revenue stream from its paid AI software subscriptions, reached 1 million paid corporate users last September and introduced a $200 monthly ChatGPT Pro option. Despite these gains, OpenAI does not expect to be cash-flow positive until 2029, when it anticipates revenue to exceed $125 billion. The company is reportedly nearing a $40 billion funding round led by SoftBank Group, with plans to transition from a nonprofit to a for-profit model.

The competitive landscape is intensifying as Chinese AI firms, such as DeepSeek, Baidu, Alibaba, and Tencent, launch cost-effective AI models, challenging US companies like OpenAI. DeepSeek's R-1 model and subsequent releases have narrowed the technological gap between Chinese and US AI firms to just three months. OpenAI's CEO, Sam Altman, announced plans to release GPT-4.5 and GPT-5, which will offer advanced features for Plus and Pro subscribers. In the US, OpenAI faces competition from Anthropic, DeepMind, xAI, and Google's Gemini.

Key takeaways:

  • OpenAI expects to more than triple its revenue to $12.7 billion this year and aims for $29.4 billion by 2026, with a long-term goal of $125 billion by 2029.
  • OpenAI is reportedly close to finalizing a $40 billion funding round led by SoftBank Group, with a valuation of up to $300 billion.
  • Chinese AI companies like DeepSeek, Baidu, and Alibaba are rapidly advancing, offering competitive and cost-effective AI models, increasing pressure on US firms.
  • OpenAI plans to release GPT-4.5 and GPT-5 soon, with enhanced features for Plus and Pro subscribers, as competition in the AI space intensifies.
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