OpenAI said its current annual revenue has exceeded $1.3 billion
The Information reports that OpenAI’s annual revenue has now surged past $1.3 billion, a staggering leap from the previous year’s modest revenue of $28 million.
This dramatic boost in revenue can be attributed not only to the introduction of ChatGPT Plus at a more competitive price but also to their collaboration with Microsoft. This partnership enables corporate users to access OpenAI’s suite of services like GPT-4, CodeX, and Dall-E directly on the Azure cloud platform.
Drawing a comparison, fine-tuning OpenAI’s advanced natural language model, GPT-3.5, costs approximately $4-$12 per session. It takes about 1 to 1.5 hours for a million-token adjustment. Such requirements might demand a price 3-8 times higher on AWS services. Intriguingly, OpenAI manages this fine-tuning with a mere eight GPU sets, naturally appealing to a vast user base.
However, with a current annual revenue exceeding $1.3 billion and an average monthly intake surpassing $100 million, OpenAI has yet to disclose its operational costs and net profit after deductions. Previous reports have suggested that OpenAI’s daily operating costs reach a whopping $700,000, with an accumulated loss of $540 million last year. Therefore, if OpenAI fails to establish a robust revenue model, it may face bankruptcy by the end of 2024.
Looking at corporations currently deploying large-scale natural language models, Microsoft’s AI programming tool, GitHub Copilot, incurs an average loss of $20 per user per month, reaching up to $80 at its peak. Given the service’s 1.5 million monthly users, Microsoft faces a monthly deficit of $30 million from this service alone, accumulating to at least $360 million annually.
This figure only represents the potential losses from GitHub Copilot. Microsoft’s AI offerings extend beyond, encompassing auto-generating AI services integrated with Bing search.
Yet, OpenAI’s current strategy of enticing users with lower prices has undeniably garnered significant support, especially attracting many startups operating on tighter budgets, thereby opening up more avenues for revenue. On the flip side, OpenAI is also actively seeking external funding. They have previously hinted at aspirations to secure a $100 billion fundraising initiative in the coming years to further advance the development of universal AI technologies.
As for OpenAI’s current market valuation, it has witnessed a spike from its recent $27-29 billion to a range of $80-90 billion.
