OpenAI’s annual revenue hits $3.4 billion, doubling since end of last year

OpenAI’s Yearly Revenue Soars to $3.4 Billion

OpenAI, a renowned player in the generative artificial intelligence market, has seen a tremendous rise in its annual revenue. According to a recent report by The Information, the AI startup’s annualized revenue has surged to $3.4 billion up from $1.6 billion at the end of last year.

Annualized revenue is calculated by multiplying monthly revenue by 12. While this may not reflect the true size of the annual revenue, it highlights noteworthy dynamics. Within half a year, OpenAI has succeeded in doubling its annualized revenue. To illustrate the growth, last summer, the firm’s annualized revenue was close to $1 billion; suggesting a three-and-a-half-fold growth over the last twelve months.

TBoasting impressive figures, the startup’s CEO, Sam Altman, shared these values at a recent employee gathering. Approximately $3.2 billion of the annualized revenue is derived from offering its services directly to clients, with an additional $200 million generated annually through the collaboration with Microsoft Azure. The first half of this year saw the startup’s capitalization valued at $86 billion. OpenAI recently appointed Sarah Friar as its CFO, filling a position that had been vacant for two successive years.

Experts believe this move could signal OpenAI’s intent to optimize financial returns from its business progression and potentially prepare the company for an initial public offering (IPO).