OpenAI’s Revenue Soars Past $1.6 Billion on ChatGPT’s Runaway Success

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OpenAI’s annualized revenue has skyrocketed to over $1.6 billion, a big jump from $1.3 billion in mid-October, according to sources familiar with the matter. The meteoric rise is largely attributed to the widespread success of ChatGPT, the conversational AI chatbot that took the world by storm after its launch in late November.

Just a year ago, OpenAI’s total revenue was just $28 million. The current revenue pace implies that the company is now generating more than $100 million per month, up 30% since last summer. This remarkable growth comes despite the dramatic temporary resignation and subsequent reinstatement of CEO Sam Altman, demonstrating continued strong customer demand for OpenAI’s products.

OpenAI’s valuation by private investors is a sky-high $86 billion. The startup is also reportedly in talks for a new round of funding that could value it at more than $100 billion, potentially making it the second most valuable private US company after SpaceX.

By contrast, OpenAI’s nonprofit, which is separate from its commercial enterprise division, generated just $44,485 in total revenue last year, almost entirely from investment income. The nonprofit does not include revenue from products like ChatGPT, which are operated by the for-profit division that is currently experiencing triple-digit revenue growth.

ChatGPT’s viral popularity has even stunned OpenAI, despite the company anticipating its launch for months. The advanced conversational model has attracted millions of users in just a few weeks, demonstrating the enormous market potential for AI chatbots. With OpenAI’s coffers already growing rapidly, it is clear that this transformative technology will continue to fuel the company’s meteoric rise.

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