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OpenAI Passes $1 Billion Revenue Pace as Big Companies Boost AI Spending

Aug 29, 2023 - theinformation.com
OpenAI, backed by Microsoft, is set to generate over $1 billion in revenue in the next year from the sale of artificial intelligence software and its computing capacity, surpassing previous revenue projections. This implies that the company, valued at $27 billion, is generating over $80 million per month, a significant increase from the $28 million revenue last year before the introduction of its chatbot, ChatGPT.

The surge in revenue indicates that app developers and companies, including secretive ones like Wall Street firm Jane Street, are finding more ways to utilize OpenAI's conversational text technology for profit or cost-saving. This growth is being closely monitored by Microsoft, Google, and numerous other businesses aiming to profit from the same technology.

Key takeaways:

  • OpenAI is projected to generate over $1 billion in revenue over the next 12 months from the sale of artificial intelligence software and computing capacity.
  • This revenue projection is significantly higher than what the company had previously shared with its shareholders.
  • OpenAI, backed by Microsoft, is currently generating more than $80 million in revenue per month, a significant increase from the $28 million it made last year.
  • Companies like Jane Street and tech giants like Microsoft and Google are finding ways to use OpenAI's conversational text technology to either generate revenue or cut costs.
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