OpenAI, creator of ChatGPT, is expecting to lose nearly $5 billion this year on revenue of $3.7 billion. The losses stem from the cost of operating its services, as well as employee salaries and office rent.
The company had revenue of $300 million in August, up 1,700 per cent from the beginning of last year, and expects sales of $11.6 billion next year, according to sources. Microsoft-backed OpenAI is currently leading a funding round that will value the company at more than $150 billion. Thrive Capital is leading the round and plans to invest $1 billion, while Tiger Global also plans to join.
News broke this week that several senior executives have left the firm amid reports that it is looking to restructure into a for-profit business. Sam Altman, the company’s founder, characterised the departures as amicable. Most high profile was the departure of technology director Mira Murati, who announced the previous day that she was leaving OpenAI after six-and-a-half years.
Sources said OpenAI’s board is considering plans to restructure the firm into a for-profit business. The company will retain its non-profit segment as a separate organisation. The structure would be simpler for investors and make it easier for OpenAI employees to realise liquidity.
OpenAI has become very popular since the company launched ChatGPT in late 2022. The company sells subscriptions to various tools and licences its family of large GPT language models that support much of the generative AI boom. Running these models requires a huge investment in Nvidia and GPUs.
