OpenAI, the A.I. startup behind chatbot phenomenon ChatGPT, is on track to generate more than $1 billion in annual revenue, according to a new report.
Details about the A.I. startup’s earnings were first reported by The Information on Tuesday, with the publication revealing that OpenAI’s income exceeded the figures the company had previously given shareholders.
The Information reported that OpenAI was currently generating around $80 million a month, defying previous expectations that the $1 billion annual revenue milestone would be reached by 2024, as reported by Reuters last December.
Last year—before it began charging users to access its generative A.I. chatbot, ChatGPT—OpenAI’s annual revenue reached just $28 million, according to The Information.
The chatbot, powered by OpenAI’s large language model (LLM), became the fastest-growing app in history earlier this year, reaching 100 million users far quicker than earlier internet sensations like Instagram, Netflix, and TikTok.
Its uncanny ability to mimic human conversation while completing tasks like writing poetry, recommending restaurants, and breaking down complex topics made ChatGPT an internet star—but for some users, the bot also came across as “unhinged” and argumentative.
The success of ChatGPT—which sparked a wave of investment in artificial intelligence from Big Tech and beyond—could put OpenAI on track to recover some of its losses, which doubled to around $540 million in 2022 as the startup developed its flagship chatbot.
A spokesperson for OpenAI was not immediately available to comment on the firm’s earnings.
Revenue drive
This year, the company—which was privately valued at around $27 billion after a $300 million share sale in April—has doubled down on its efforts to build revenue.
OpenAI launched a business version of ChatGPT this week, with the ChatGPT Enterprise model featuring improved security and privacy features. The company said in a blog post on Monday that early users included Canva, Estée Lauder, and PwC.
“Since ChatGPT’s launch just nine months ago, we’ve seen teams adopt it in over 80% of Fortune 500 companies,” OpenAI added.
The launch came seven months after OpenAI rolled out a $20 a month premium subscription service for ChatGPT’s most dedicated users.
For now, ChatGPT remains free for casual users, but access can be impacted by high demand levels, and nonsubscribers cannot access all of the features available to those who pay for the chatbot.
The company’s CEO, Sam Altman, said in December that OpenAI would “have to monetize [ChatGPT] somehow at some point,” revealing that the computing costs involved with running the program were “eye-watering.”
Aside from making money via ChatGPT, OpenAI generates revenue by selling API access to its A.I. models.
However, it may be some time before the company fully reaps the rewards of its own success. Under the terms of a deal it made with Microsoft earlier this year, the tech giant is entitled to 75% of OpenAI’s profits until its $13 billion investments in the startup are repaid.
The Information also previously reported that Altman expects OpenAI’s ambitions around artificial general intelligence (AGI) to cost it another $100 billion.
Correction: This article has been updated to state the correct price of a ChatGPT Plus subscription.
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FAQs
OpenAI is reported to be earning US$80m per month, on track to gener- ate over US$1B in annual revenue, potentially recovering its US$540m loss from the previous year.
Does OpenAI make money on ChatGPT? ›
A free version of ChatGPT is available on OpenAI's website, and the company also sells a more advanced version on a subscription basis. ChatGPT generates billions in annualized revenues but continues to be loss-making.
How much does ChatGPT make a month? ›
Chat Gpt Salary
| Annual Salary | Monthly Pay |
|---|
| Top Earners | $171,500 | $14,291 |
| 75th Percentile | $148,000 | $12,333 |
| Average | $104,054 | $8,671 |
| 25th Percentile | $60,500 | $5,041 |
Someone needs to ask ChatGPT for a cheaper solution to artificial intelligence. An analysis conducted by The Information claimss OpenAI could lose as much as $5 billion this year due to the massive costs of running AI products like ChatGPT.
How much money does ChatGPT make? ›
OpenAI revenues reached $1.6 billion in 2023, with most of it coming from ChatGPT subscriptions and enterprise usage.
How do GPT creators get paid? ›
The GPT Store allows creators to monetize their innovations by earning revenue from the sale of specialized chatbots. 12. Explore the Marketplace: Engage with the GPT Store's marketplace, where paid ChatGPT users can buy and sell personalized chatbot agents.
What does Elon Musk think about OpenAI? ›
As we discussed a for-profit structure in order to further the mission, Elon wanted us to merge with Tesla or he wanted full control. Elon left OpenAI, saying there needed to be a relevant competitor to Google/DeepMind and that he was going to do it himself.
Which country uses ChatGPT the most? ›
Top 7 countries that use ChatGPT the most
- India. India leads the list with 45% of surveyed individuals reporting usage of ChatGPT. ...
- Morocco. In Morocco, 38% of those surveyed use ChatGPT. ...
- UAE. The UAE ranks third, with 34% of surveyed individuals using ChatGPT. ...
- Argentina. ...
- Brazil. ...
- Indonesia. ...
- South Africa.
ChatGPT was created by OpenAI, an AI research company. It started as a nonprofit company in 2015 but became for-profit in 2019. Its CEO is Sam Altman, who also co-founded the company. OpenAI released ChatGPT as a free “research preview” in November 2022.
How many people are using ChatGPT right now? ›
Furthermore, OpenAI's chief, Sam Altman, reports that ChatGPT draws in 100 million users on a weekly basis. "Surpassing 1 million users in just 5 days, ChatGPT currently has over 180.5 million users.
Answer: $700,000.
A new report has the numbers on how much it costs to operate the generative AI chatbot, and it's a lot. SemiAnalysis' Chief Analyst Dylan Patel released the report this week. According to his analysis, running ChatGPT costs approximately $700,000 a day. That breaks down to 36 cents for each question.
Will ChatGPT make people lose jobs? ›
So no ChatGpt is not going to destroy human jobs. It would just make your life easier by delivering certain outputs faster. According to a study by OpenAI, ChatGPT and other such technologies have the potential to significantly affect a diverse range of occupations within the US economy.
Who owns OpenAI? ›
The ownership pie is split between Microsoft (49 percent) and other stakeholder (49 percent) and the initial OpenAI non-profit foundation that remains steadfastly independent while the top company continues to record OpenAI the history of OpenAI.
What age group uses ChatGPT the most? ›
ChatGPT demographic stats
The largest age group is 25-34 year olds (33.86%), followed by 18-24 year olds (22.89%).
How are people using ChatGPT to make money? ›
If you want to turn ChatGPT into a tool that accelerates your career growth and simultaneously, your pocket, here are five options for you to consider:
- Use ChatGPT To Help You Land A Promotion/Pay Raise. ...
- Passive Income With ChatGPT's GPT Store. ...
- Build A Product Or Service Outside The GPT Store. ...
- Content Creation.
What is ChatGPT used for? ChatGPT offers many functions in addition to answering simple questions. ChatGPT can compose essays, have philosophical conversations, do math, and even code for you. The tasks ChatGPT can help with also don't have to be so ambitious.
Is OpenAI in profit? ›
While our partnership with Microsoft includes a multibillion dollar investment, OpenAI remains an entirely independent company governed by the OpenAI Nonprofit. And, as explained above, AGI is explicitly carved out of all commercial and IP licensing agreements.
How much does it cost for OpenAI to run ChatGPT? ›
Microsoft is reportedly trying to make it cheaper. ChatGPT could cost OpenAI up to $700,000 a day to run due to "expensive servers," an analyst told The Information. ChatGPT requires massive amounts of computing power on expensive servers to answer queries.
What is the source of revenue for ChatGPT? ›
ChatGPT leverages diverse revenue streams, including a premium subscription model, enterprise solution, advertising and partnerships, while offering a free model - ChatGPT 3.5 to all its new and existing users. ChatGPT sustains its operations and looks after new innovation and growth.
Where does OpenAI get its funding? ›
The fund's investors include Microsoft and other OpenAI partners, although OpenAI itself is not an investor. If your startup plans to push the boundaries of today's artificial intelligence, get in touch at hello@openai.fund. Founders from underrepresented groups are especially encouraged to reach out.
