Less than three years after debuting ChatGPT, OpenAI has reached $10 billion in annual recurring revenue (ARR), and is targeting $125 billion by 2029.
$10 billion ARR puts OpenAI in the same league as major public SaaS companies—but at warp speed. This figure includes sales from the company’s consumer products, ChatGPT business products and its application programming interface, CNBC reported.
However, this figure excludes the revenue from existing deal with Microsoft. ET reported in May that OpenAI has agreed to share 20% of its revenue with Microsoft through 2030.
The development comes amid reports of increased operational spending. OpenAI spends approximately $700,000 daily to run ChatGPT. This has raised severe concerns about the sustainability of its pricing model specifically when a single query can cost up to $1,000.
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