OpenAI is facing huge losses while doubling its revenues with the success of ChatGPT. Documents reviewed by US journalists reveal that the company generated $300 million in monthly revenue in August, representing a 1700 percent year-on-year increase. But the rapid growth also led to a huge increase in expenses such as cloud computing, salaries and office space.
OpenAI revenue up 1700% but will lose $5 billion
OpenAI is expected to lose about $5 billion this year. The company, which is expected to generate $3.7 billion in revenue in 2024, expects losses to increase further without new funding. This situation has once again highlighted the difficulty of controlling costs in ambitious technology companies.
OpenAI aims to raise $7 billion in a new funding round led by Thrive Capital. This round could value the company at $150 billion, making it one of the brands with the highest valuations.
In addition to a $750 million direct investment, Thrive Capital will raise another $450 million from other investors through a private round. Brands such as Apple, Nvidia and Microsoft are expected to participate in this funding process.
The company announced that the number of users has now reached 350 million per month, up from 100 million in March. It also estimates that revenue could grow to $11.6 billion next year and $100 billion by 2029.
But OpenAI’s dependence on Microsoft’s cloud services is causing costs to skyrocket. The company realizes that it must continue to raise funds quickly, depending on more customers and staff. Not forgetting, of course, that services like ChatGPT Plus may go up.
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