OpenAI’s annualized revenues have exceeded $2 billion, marking it as one of the quickest-expanding tech firms ever, thanks to the widespread popularity of its leading AI product, ChatGPT.

According to two individuals familiar with its financials, the yearly revenue run rate of the San Francisco-based startup—calculated by multiplying the previous month’s revenue by 12—reached the $2 billion mark in December 2023.

With Microsoft’s backing, sources indicate that the company is projecting a revenue surge, potentially doubling its current figures by 2025. This forecast is based on the growing appetite among business clients to integrate OpenAI’s advanced generative AI tools into their professional environments.

This remarkable growth trajectory is expected to catapult OpenAI into the elite circle of Silicon Valley giants, such as Google and Meta, which have crossed the $1 billion revenue threshold within just ten years of their inception.

Initially established in 2015 as a non-profit AI research organization, OpenAI has evolved into a commercial powerhouse after introducing a business division in 2020. As reported by The Information, a technology news outlet, the company’s annualized revenue reached $1.3 billion by October of the previous year. Since then, the rate of sales growth has only accelerated.

In spite of internal upheavals in November, when CEO Sam Altman was temporarily removed from his position by OpenAI’s board before being reinstated a few days later, the company has continued to thrive. It leverages the momentum of the AI revolution it initiated with the debut of ChatGPT in November 2022.

Altman has highlighted that as of November last year, an impressive 92 percent of Fortune 500 companies had adopted OpenAI’s offerings, such as ChatGPT and its foundational AI model, GPT-4. Furthermore, the chatbot boasts a weekly user base of 100 million.

Despite this widespread usage, OpenAI continues to operate at a loss, attributed to the significant expenses involved in developing and maintaining its models. Altman anticipates that expenditures will keep exceeding revenue gains as the company pursues the creation of even more advanced models. Consequently, OpenAI is expected to seek additional funding, potentially amounting to tens of billions, to cover these extensive costs.

Via: Financial Times