ChatGPT Creator OpenAI Inching Towards $1 Billion Annual Revenue Mark, Claims Report

OpenAI, the AI startup behind ChatGPT, is inching towards generating more than $1 billion in annual revenue, according to a new report. Details about the AI startup¡¯s earnings were first reported by American tech news website The Information, with the publication revealing that OpenAI¡¯s income exceeded the figures the company had previously given shareholders.

ChatGPT Maker Earning $80 Million A Month

Unsplash

OpenAI is currently generating around $80 million a month ($960 million annually). Last year¡ªbefore it began charging users to access its generative A.I. chatbot, ChatGPT¡ªOpenAI¡¯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¡ªbut for some users, the bot also came across as ¡°unhinged¡± and argumentative.

The success of ChatGPT¡ªwhich sparked a wave of investment in artificial intelligence from Big Tech and beyond¡ªcould 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, as per Fortune report.

Also Read: TCS Confirms Plan To Build Its Own ChatGPT-Like AI Tool

How OpenAI Is Increasing Its Revenue

AP

This year, OpenAI, 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, Est¨¦e 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, as per the report. 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.

CEO Had Hinted At Monetizing ChatGPT

getty

The company¡¯s CEO, Sam Altman, had 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.¡±

Besides making money via ChatGPT, OpenAI generates revenue by selling API access to its AI 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. It was previously reported that Altman expects OpenAI¡¯s ambitions around artificial general intelligence (AGI) to cost it another $100 billion.

Also Read: Elon Musk Reveals Tesla's Plan To Have Its Own ChatGPT-Like Moment

For the latest and more interesting financial news, keep reading Indiatimes Worth. Click here.