OpenAI has announced that it has reached $10 billion in annual recurring revenue (ARR), up from around $5.5 billion last year. This includes revenue from the company’s consumer products, ChatGPT business products, and its API, an OpenAI spokesperson told CNBC.
OpenAI currently has 500 million weekly active users and three million paying business customers. This revenue has been largely fueled by the popular chatbot ChatGPT, which had been launched roughly two and a half years earlier.
OpenAI is also reportedly targeting a revenue of $125 billion by 2025. The company also closed a $40 billion funding round last March, marking the largest private tech deal on record. The company has Japan’s SoftBank, Microsoft, Coatue, Altimeter, and Thrive among its investors.
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This surge in revenue indicates that there is a rising demand for artificial intelligence tools like ChatGPT. OpenAI has seen extraordinary growth ever since it launched ChatGPT in 2022. The chatbot quickly became the fastest consumer application to reach 100 million weekly active users, and now boasts more than 500 million users globally. This trend can be seen all over the AI industry with AI coding tool Cursor reaching $500 million in ARR this year, up from under $100 million in 2024. Anthropic, backed by Google and Amazon, tripled its ARR to $3 billion between January and May.
However, in spite of these developments, none of these companies are profitable yet. OpenAI has told investors it does not expect to reach profitability until 2029, when it projects revenues of $125 billion.
In the meantime, aggressive investor backing has fueled rapid expansion. There are also some signs of AI-adoption growth beginning to level off. The proportion of U.S. businesses paying to use AI models has quadrupled to about 40% over the past two years, according to fintech company Ramp. However, that growth stalled in May for the first time in 10 months, suggesting that much of the immediate demand may have already been tapped. Still, OpenAI’s revenue base remains strong.
OpenAI has also been expanding into hardware, and infrastructure projects. Recently, the company acquired io, former Apple designer John Ive’s AI devices startup for $6.4 billion, pushing it into the world of hardware for the first time.
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OpenAI also partnered with SoftBank for the Stargate Project, which aims to build the world’s largest AI-focused data centers. However, this project faced setbacks recently with economic risks stemming from Washington D.C.’s tariffs holding up financing talks.
OpenAI also recently announced that it now has three million paying business users, up from two million in February. These users include ChatGPT Enterprise, ChatGPT Team, and ChatGPT Edu customers, according to the company. OpenAI’s Chief Operating Officer Brad Lightcap said that there is “a tight interconnect” between the growth of ChatGPT as a consumer tool and its adoption in the enterprise and in business. He also stated that OpenAI is seeing its business tools adopted across industries including highly regulated sectors like financial services and healthcare.