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Artificial intelligence giant OpenAI expects to see its revenue more than triple to hit $12.7 billion by the end of the year, Bloomberg reported, citing an undisclosed source familiar with the matter.
OpenAI generated $3.7 billion in annual revenue last year, according to the source. The number was first reported last September by the New York Times, which also detailed that OpenAI expected to rack up roughly $5 billion in losses in 2024, and anticipated $11.6 billion in revenue in 2025. The company hit the $2 billion revenue mark in December 2023, seven years after its founding.
According to the numbers reported on Wednesday, OpenAI seems to have revised its revenue expectations up on the strength of its AI software sales. OpenAI chief financial officer Sarah Friar told Bloomberg TV last October that the company’s paid consumer subscriptions made up roughly 75% of its revenue at the time.
The AI giant further expects revenue to continue soaring into 2026 as well, according to Bloomberg, more than doubling to $29.4 billion by the end of next year.
But despite the rising revenue, OpenAI does not expect to be cash-flow positive until 2029 when projected revenue will top $125 billion, Bloomberg reported. OpenAI incurs significant costs in developing its AI systems, particularly stemming from expenditures related to chips, data centers, and talent, although the company doesn’t publicly share finances.
OpenAI didn’t immediately respond to Quartz’s request for comment on the matter.
It’s been a busy week for OpenAI. The company announced a broad leadership shakeup on Monday, which saw CEO Sam Altman shifting his focus specifically to research and products. And on Tuesday, the company unveiled a new ChatGPT update that integrated its latest image-generation technology into its GPT-4o model chatbots.