Despite doubling its losses to $540 million last year, OpenAI's rapidly growing revenue could boost its valuation in future funding rounds. The company's partnership with Microsoft Corp., which has built multiple supercomputing systems to run OpenAI’s AI models, could help offset the high infrastructure costs associated with the growth of its chatbot, ChatGPT. OpenAI is also developing new features and automation tools for ChatGPT to cater to specific use cases such as marketing, sales, and customer support.
Key takeaways:
- OpenAI LP is reportedly on track to generate more than $1 billion in annual revenue due to strong demand for its AI models.
- The company's revenue over the next 12 months is expected to surpass $1 billion, a significant increase from the $28 million in sales it logged last year.
- OpenAI is reportedly far ahead of revenue projections it has shared with shareholders, and the launch of its ChatGPT Enterprise service could potentially further accelerate its sales momentum.
- OpenAI's losses reportedly doubled to $540 million last year, and its expenses could increase further as ChatGPT usage grows. However, the impact of ChatGPT’s infrastructure requirements on OpenAI’s profitability could be partly mitigated by its partnership with Microsoft Corp.