IBL News | New York
OpenAI is growing fast while burning through piles of money, struggling to get its costs under control.
According to documents reviewed by The New York Times, OpenAI expects about $3.7 billion in annual sales in 2024 (up from $700 million in 2023) and losses of $5 billion —without including equity-based compensation to employees.
Revenues expected for 2025 are $11.6 billion—and $100 billion in 2029, roughly matching the current annual sales of Nestlé or Target.
Monthly revenue hit $300 million in August, up 1,700% since the beginning of 2023. Over 350 million people use OpenAI’s services. Roughly 10 million users pay the company a $20 monthly fee for ChatGPT. OpenAI expects to raise that price by $2 by the end of the year.
OpenAI CEO Sam Altman is pitching a $7 billion investment round as the company needs more cash. That could value the start-up at $150 billion, up from just $30 billion a year ago.
Microsoft invested more than $13 billion in OpenAI, but much of that money is spent on its cloud computing systems, which host OpenAI’s products.
In addition to Thrive Capital, the lead investor in the new round, OpenAI is in talks with Microsoft, Apple, Nvidia, Tiger Global and MGX, a technology investment firm controlled by the United Arab Emirates, according to three people familiar with the discussions.
The NYT got ahold of docs from the OpenAI funding round.
– 350 million people used Chat in Aug
– huge user growth after anon login
– 10 mill active subscribers
– sub going up to $2 by the end of the year, the sub will scale up to $44 by 2029
– projected yearly rev by 2029: $100B pic.twitter.com/mD1lNCfhr4— Andrew Curran (@AndrewCurran_) September 27, 2024
