OpenAI is projected to triple its revenue to approximately $12.7 billion this year, primarily driven by its paid AI software offerings, despite not expecting to achieve profitability until 2029. The company is also in talks to raise up to $40 billion in private funding, potentially valuing it at around $300 billion, reflecting strong investor optimism about its future growth.
OpenAI is projected to see its revenue more than triple this year, reaching approximately $12.7 billion, driven primarily by its paid AI software offerings, including ChatGPT. This information comes from a source familiar with the company’s financial growth, as reported by Bloomberg. Last year, OpenAI’s annual revenue was around $3.7 billion, indicating a significant increase in demand for its products.
Looking ahead, OpenAI is expected to continue this upward trajectory, with projections suggesting that revenue could exceed $29 billion next year. However, despite this impressive revenue growth, the company is not anticipated to achieve profitability in the near term. According to the same source, OpenAI does not expect to be cash flow positive until 2029, when it forecasts revenue to surpass $125 billion.
The high costs associated with running the business, including expenses related to data centers, chips, and talent acquisition, are contributing factors to the lack of profitability. Nonetheless, OpenAI is reportedly gaining traction in its subscription offerings for both consumers and enterprises, indicating a solid market presence despite the financial challenges.
In addition to its revenue growth, OpenAI is currently in discussions to raise up to $40 billion in private funding, with SoftBank potentially leading this round. If successful, this funding could value the company at around $300 billion, reflecting a revenue multiple of approximately 23 times, which is considered high for startups. This suggests that investors remain optimistic about OpenAI’s future growth potential.
The conversation also touched on the changing landscape of investment expectations, with significant sums being discussed regularly. SoftBank, known for making substantial bets on startups, is seen as a key player in this funding round. OpenAI’s CEO, Sam Altman, is recognized for his ability to attract investment by promoting the transformative potential of AI, although the sustainability of these growth projections remains to be seen.