OpenAI reports $10 billion in annual recurring revenue as ChatGPT growth accelerates

OpenAI has reached $10 billion in annual recurring revenue (ARR), just over two years after launching its widely used chatbot, ChatGPT.

The company confirmed in a media report that the figure includes revenue from consumer subscriptions, business-focused ChatGPT products, and its application programming interface (API), but excludes income from Microsoft licensing and large one-off deals.

The growth underscores OpenAI’s rapid expansion in the artificial intelligence sector. Last year, the company reported around $5.5 billion in ARR. Despite the jump in revenue, OpenAI posted a loss of approximately $5 billion over the same period.

The San Francisco-based firm is also aiming for $125 billion in annual revenue by 2029, according to a person familiar with the matter. The Information was first to report the company’s long-term target.

OpenAI’s financial growth aligns with its rising valuation. In March, the company secured a $40 billion funding round, the largest private tech deal on record. At current figures, the valuation stands at roughly 30 times its revenue, reflecting the strong confidence of investors including Microsoft, SoftBank, Coatue, Altimeter and Thrive Capital.

Since the launch of ChatGPT in late 2022, OpenAI has rapidly expanded its user base. As of March, it reported 500 million weekly active users and said it now has over three million paying business customers, up from two million in February.

The company’s chief executive, Sam Altman, appeared alongside Microsoft chair and CEO Satya Nadella at the Microsoft Build conference in Seattle last month, underlining the strategic partnership between the two firms.