Jakarta, Indonesia Sentinel — OpenAI, the creator of ChatGPT, is projected to incur a loss of around $5 billion this year, despite generating $3.7 billion in revenue, according to a report from CNBC International. Last month alone, OpenAI achieved $300 million in monthly revenue, marking a 1,700% growth since the start of 2023. Despite these losses, the company aims to reach $11.6 billion in sales next year.
This information comes from a source familiar with OpenAI, who requested anonymity since the figures are still confidential. Previously, The New York Times reported on OpenAI’s financial struggles after reviewing internal company documents.
OpenAI, backed by Microsoft, is currently pursuing new funding, with its valuation expected to exceed $150 billion. Thrive Capital is leading this funding round with plans to invest $1 billion, and Tiger Global is also expected to participate.
OpenAI’s CFO, Sarah Friar, informed investors via email last Thursday that the funding round was ‘oversubscribed,’ meaning demand has outpaced available investment opportunities, and it is expected to close next week. This announcement follows a series of executive departures, most notably CTO Mira Murati, who resigned last Wednesday after more than six and a half years at the company.
Additionally, there are reports that OpenAI’s board of directors is considering restructuring the company to shift its focus toward profit-making, while maintaining a nonprofit segment as a separate entity. This move, according to someone familiar with the matter, would make it easier for investors and provide OpenAI employees with greater liquidity.
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The new structure is expected to enhance flexibility for investors while solidifying OpenAI’s position in the increasingly competitive global AI market.
(Ray)
