OpenAI revenue $1.3 billion annualised rate, says report

This would mean that the ChatGPT-maker is making more than $100 million a month in revenue, a 30% jump from early this year.

October 13, 2023 03:55 pm | Updated 03:55 pm IST

FILE PHOTO: OpenAI is generating revenue at a pace of $1.3 billion a year, CEO Sam Altman told company staff this week. REUTERS/Dado Ruvic/File

FILE PHOTO: OpenAI is generating revenue at a pace of $1.3 billion a year, CEO Sam Altman told company staff this week. REUTERS/Dado Ruvic/File | Photo Credit: Reuters

Microsoft-backed AI firm OpenAI is generating revenue at a pace of $1.3 billion a year, CEO Sam Altman told company staff this week, a report by The Information revealed. This would mean that the ChatGPT-maker is making more than $100 million a month in revenue, a 30% jump from early this year when it was reported that OpenAI was projected to make more than $1 billion in revenue over the next 12 months.

The Information had earlier reported that last year the company’s revenue stood at just $28 million in comparison. The fast-paced growth shows the money flowing in from subscriptions to its hit conversational chatbot, ChatGPT. The upgraded subscription service costs are at $19.99 per month that are faster, give priority even during peak time periods and have early access to new features and releases.

The numbers spells relief for the company which had been figuring out how to sustain running the bot while bearing what Altman has described as “eye-watering” operating costs.

Intelligence firm Appfigures cited that ChatGPT’s app saw 15.6 million downloads in mobile app installs and nearly $4.6 million in gross revenue across its iOS and android apps globally for September setting a new record.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

However, revenue growth had still slowed down as increase in revenue for July and August was posted at 31% and 39% respectively.

Last year, the company was valued at around $29 billion but a recent Wall Street Journal report stated that OpenAI is in discussions to sell shares which could skyrocket its valuation to between $80 billion and $90 billion.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.