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OpenAI nearing $1 billion in annual revenue

OpenAI nearing $1 billion in annual revenue

OpenAI is fast approaching $1 billion in revenue this year. The feat can mainly be attributed to the success of its generative AI chatbot ChatGPT.

There is no denying that ChatGPT is incredibly popular. Therefore, the generative AI chatbot is becoming very lucrative for OpenAI. Bloomberg expects total sales of $1 billion (about 919 million euros) by 2023.

According to anonymous Bloomberg sources, OpenAI is said to earn about $80 million a month. By the end of this year, this should already allow the AI developer to generate about $1 billion in revenue.

Revenue sources

According to Bloomberg, the introduction of the paid business version ChatGPT Enterprise has been a good move for OpenAI to make the tool profitable. However, this version is expensive to run, as the large AI models behind it require a lot of computing power.

Other interesting sources of revenue for ChatGPT are the existing Premium version and paid access to APIs for businesses. The latter source of revenue is also very interesting, as more and more (software) companies are integrating the generative AI tool into their own solutions.

Recovering development costs

With the rapid revenue growth, the development costs incurred in 2022 for the generative AI tool are rapidly being recouped. Sources state that OpenAI recorded a loss of about $540 million last year for the development of the GPT-4 AI model and the ChatGPT tool.

Also read: OpenAI’s ChatGPT Enterprise doubles speed and removes privacy concerns