The company's high valuation is in stark contrast to its reported revenue and has raised questions about its financial transparency. OpenAI has raised billions of dollars from investors, primarily Microsoft, to fund its operations. However, its 990 filing showed only $1.3 million in expenses last year. The company's financial reporting and governance structure have come under scrutiny, with calls for more transparency and stronger corporate governance.
Key takeaways:
- OpenAI, valued at $86 billion, reported a revenue of only $44,485 last year according to its 990 filing with the IRS. The last time OpenAI filed with the state of California was in 2017, when its revenue was $33.2 million.
- OpenAI's financials remain unclear due to its dual structure as a nonprofit and a capped-profit entity. The company generated $28 million in revenue last year and is expected to approach $1 billion in 2023, according to The Information.
- There has been recent turmoil in OpenAI's leadership, with CEO Sam Altman being fired and then reinstated after employee and investor pushback. This has led to questions about whether OpenAI should continue as a nonprofit.
- OpenAI has committed to enhancing its governance structure following Altman's return, with board chair Bret Taylor stating that the board will continue to strengthen OpenAI's corporate governance and ensure that artificial general intelligence benefits all of humanity.