OpenAI achieves record $1.6Bn in annualised revenue: Report

OpenAI, the Sam Altman helmed artificial intelligence (AI) research lab, has reported a record annualised revenue figure exceeding $1.6Bn, showcasing a remarkable 20% growth over just two months. These latest numbers, coming in via The Information, come on the heels of a leadership crisis that unfolded in November, when CEO Sam Altman was abruptly fired and subsequently reinstated. Despite this turmoil, OpenAI has demonstrated resilience, retaining its business momentum and successfully selling AI technology to enterprises.

The impressive revenue surge is primarily attributed to the widespread popularity of OpenAI’s ChatGPT product, an advanced conversational AI model that took the world by storm at its launch last year. ChatGPT single-handedly accelerated conversational AI technology to unprecedented levels, bringing AI to the forefront for several enterprises across the tech and IT domain.

OpenAI’s ChatGPT has played a crucial role in attracting users, with the company reportedly generating up to $130 million in monthly revenue from subscriptions and API access for developers. Launched in February of the previous year, ChatGPT has become a key revenue driver for OpenAI, contributing impressively to its financial success.

The recent revenue accomplishment propels OpenAI’s valuation to $86 billion, as private investors recognise the potential of its cutting-edge AI technologies. Discussions about a new funding round are underway, with OpenAI aiming for a valuation of $100 billion or more. Microsoft, a major investor in OpenAI, plays a crucial role in the company’s financial structure.

However, alongside its financial triumphs, OpenAI has found itself entangled in legal disputes. The New York Times recently filed a lawsuit against OpenAI and Microsoft, alleging copyright infringement. The media giant claims that its content was used to train AI models without proper authorisation, seeking damages in the billions of dollars.

Read more at thetechportal.com

x