OpenAI closes in on $3.4b in annualized revenue: report

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OpenAI expects to earn about US$3.4 billion in annualized revenue this year, more than double the US$1.6 billion it reportedly hit in late 2023, sources told The Information. Annualized revenue is an estimate done by multiplying a single month’s revenue by 12.

Sam Altman, the AI research firm’s CEO, shared the figures with staff at an all-hands meeting, the report said.

The bulk of OpenAI’s annualized revenue – around US$3.2 billion – reportedly comes from its products and services. Another US$200 million came from offering its AI models through Microsoft Azure.

OpenAI, most recently valued at US$86 billion, is facing a heightened push from similarly well-funded rivals. Google has launched the latest versions of its AI models, and so has the startup Reka AI.

Meanwhile, Elon Musk’s xAI is reportedly closing a new fundraising round that would value it at US$24 billion. Paris-based Mistral AI announced its US$640 million raise at a US$6 billion valuation just yesterday. Apple has also released a slate of AI tools embedded within its products.

For its part, OpenAI has rolled out GPT-4o, the first version of its advanced AI model. However, GPT-4o comes with its own share of hurdles.

See also: Hurdles beyond the hype of GPT-4o’s impact on businesses