OpenAI is planning a $7 billion funding round next week, potentially raising its market value to $150 billion, according to The New York Times. This move comes as the company prepares to share a financial report with potential investors, outlining its recent growth and future plans.
Revenue Growth and User Expansion
In August, OpenAI’s revenue more than tripled compared to the previous year. As of June, its services were used by around 350 million people—3.5 times more than in March. The surge in growth is largely due to the popularity of ChatGPT, which saw a significant rise in users after the option to access the chatbot without an account or login was introduced.
OpenAI expects ChatGPT to generate $2.7 billion in revenue this year, a substantial increase from $700 million in 2023. Another $1 billion is anticipated from companies using OpenAI’s technology. Despite this growth, the company remains unprofitable, facing a projected $5 billion loss this year. We’ll keep you updated on how this situation evolves.
Subscription Plans and Future Revenue
The financial report reveals that about 10 million ChatGPT users currently pay $20 per month. OpenAI plans to raise the subscription fee to $22 by the end of the year, and further to $44 within the next five years. Over a million third-party developers are also leveraging OpenAI technology to power their services.
OpenAI forecasts that its annual revenue will reach $100 billion by 2029, putting it on par with the current sales of major corporations like Nestlé or Target, adds NIXsolutions.
Transition to a For-Profit Model
The report highlights OpenAI’s ongoing transition from a non-profit to a for-profit model, which will eliminate restrictions on investor returns. This shift will enable OpenAI to negotiate with investors offering higher returns, opening up more opportunities for growth.
We’ll keep you updated as OpenAI continues to expand and adapt its business strategy.