OpenAI Reportedly Hits $10B In Annual Recurring Revenue In Under 3 Years Of Launching ChatGPT

According to a report by CNBC, the figure does not include licensing revenue from Microsoft and other large one-time deals.

OpenAI has reportedly reached $10 billion in annual recurring revenue less than three years after launching its ChatGPT platform.

According to a report by CNBC, the figure includes revenue from consumer subscriptions, business-tier ChatGPT services, and application programming interface (API) usage. It does not include licensing revenue from Microsoft (MSFT) and other large one-time deals. 

OpenAI’s annual recurring revenue (ARR) last year was reportedly $5.5 billion, though the company posted a $5 billion loss.

OpenAI is aiming for $125 billion in annual revenue by 2029, according to CNBC.

ChatGPT revenue has increased substantially since January, with OpenAI generating at least $415 million per month by March, according to The Information, which reported in April. That reflects a 30% increase in revenue over the first quarter.

As of late March, OpenAI reported 500 million weekly active users. The company said earlier this month it now serves three million paying business users, up from two million in February.

OpenAI also completed a $40 billion funding round in March, the largest private capital raise for a technology company to date. Investors include Microsoft (MSFT), SoftBank, Thrive Capital, Altimeter Capital, and Coatue Management.

However, OpenAI is also fighting legal pressure. The company is challenging a court order to preserve all ChatGPT output data indefinitely, a requirement stemming from The New York Times’ copyright lawsuit.

“We will fight any demand that compromises our users' privacy; this is a core principle,” OpenAI CEO Sam Altman posted on X, calling the Times' request “inappropriate.”

To drive subscription growth, OpenAI has added premium features to its flagship ChatGPT service over the past year. 

Subscribers now have access to Sora, the company’s video generation tool, and advanced voice mode with screen-sharing capabilities, both of which were rolled out in December. 

The company’s most recent model, GPT-4o, offers more realistic image generation, including accurate renderings of human figures and written text.

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