OpenAI, the company behind the popular ChatGPT tool, may not be profitable yet, but a recent report suggests their revenue is booming. According to The Information, OpenAI’s annualized revenue – a way of estimating yearly income based on monthly earnings – has doubled in the past six months.
CEO Sam Altman reportedly informed staff that OpenAI’s annualized revenue currently sits at $3.4 billion. This is a significant jump from $1.6 billion at the end of 2023 and $1 billion a year before that.
The revenue surge is attributed to two main sources. Firstly, a paid subscription version of ChatGPT. This premium service offers increased messaging limits for users willing to pay at least $20 per month and unlocks access to ChatGPT’s superior GPT 4 model. Secondly, developers are paying OpenAI to integrate the company’s powerful language models into their applications and services.
Microsoft also contributes a significant chunk to OpenAI’s income. The tech giant pays OpenAI a share of sales whenever businesses utilize OpenAI’s language models through Microsoft Azure, their cloud computing platform. This contribution is estimated to be around $200 million annually.
OpenAI did not confirm the exact details of the financial report, with a spokesperson calling the information “inaccurate” without specifying which parts were wrong.
This news comes on the heels of Apple’s announcement of a partnership with OpenAI. Apple is integrating ChatGPT directly into its operating systems for iPhones, iPads, and Macs. This would allow Siri, Apple’s virtual assistant, to tap into ChatGPT’s abilities to answer user questions. The financial details of this deal remain undisclosed but are expected to be significant.
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