San Francisco (TDI): OpenAI, the company behind ChatGPT, anticipates losing almost $5 billion on revenue of $3.7 billion this year.
According to the New York Times, the business made $300 million in income last month, up 1,700% since the start of the year, and plans to bring in $11.6 billion in sales the coming year.
After examining corporate paperwork, the New York Times broke the story on OpenAI’s finances earlier on Friday.
People familiar with the subject said that OpenAI, supported by Microsoft, is presently exploring a funding round that would value the company at more than $150 billion.
Thrive Capital is leading the round with a $1 billion investment, and Tiger Global plans to join.
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In an email to investors on Thursday, OpenAI CFO Sarah Friar stated that the investment round is oversubscribed and will end by next week.
Her message came after many significant exits, notable among them being Mira Murati, the technical chief, who had announced that she was quitting OpenAI after 6.5 years.
News that OpenAI’s board is considering restructuring the company to become a for-profit enterprise also broke this week. The company will maintain a separation between its charitable segment and other operations.
The insider stated that the arrangement would be easier for the staff of OpenAI to realize liquidity and would be more transparent for investors.
Since the business introduced ChatGPT in late 2022, demand for OpenAI’s services has skyrocketed.
The company licenses its GPT family of massive language models, which are mostly to blame for the generative AI boom, and sells subscriptions to several tools.
A significant investment in Nvidia’s graphics processing units is necessary to run those simulations.
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Based on an examination of OpenAI’s documentation by a financial expert, The Times stated that the company’s operating expenses, including office rent and personnel wages, account for about $5 billion in losses this year.
According to the report, equity-based remuneration is not included in the costs, “among several large expenses not fully explained in the documents.”
