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openai expects to lose about $5 billion this year on revenue of $3.7 billion

2024-09-28

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according to whip bull report, on september 28, cnbc confirmed that openai, the creator of chatgpt, expects revenue this year to reach us$3.7 billion and a loss of approximately us$5 billion.

according to a person close to openai, the company's revenue last month was $300 million, a 1,700% increase since the beginning of last year, and sales are expected to reach $11.6 billion next year.

the person spoke on condition of anonymity because the figures are confidential.

the new york times first reported on openai's financials earlier friday after reviewing the company's filings. cnbc has not yet seen the financial condition report.

people familiar with the matter revealed to cnbc that openai is backed by microsoft and is currently undergoing a round of financing with a valuation of more than $150 billion. thrive capital leads this round of financing and plans to invest us$1 billion, and tiger global also plans to join.

openai chief financial officer sarah friar told investors in an email thursday that the funding round is oversubscribed and will close next week. her announcement follows several key executive departures, most notably technology chief mira murati, who announced her departure the day before after six and a half years at openai.

this week, there was also news that openai’s board of directors is considering restructuring the company into a for-profit enterprise. the company will keep its nonprofit arm as a separate entity, a person familiar with the matter told cnbc.

the structure is more straightforward for investors and makes it easier for openai employees to achieve liquidity, sources said.

since the launch of chatgpt in late 2022, openai's service has soared in popularity. the company sells subscriptions to various tools and licenses its gpt family of large language models, which have fueled the boom in generative ai. running these models requires an nvidia graphics processing unit (gpu).

the new york times cited an analysis by a financial professional who has reviewed openai documents, saying that losses of about $5 billion this year are related to the cost of operating services, as well as employee wages and office rent.

the costs do not include stock-based compensation, "one of several large expenses not fully explained in the document," the paper said.