OpenAI’s latest ARR reaches $1.6 billion

According to the latest report from Information, due to the strong growth of ChatGPT products, OpenAI’s latest ARR increased from US$1.3 billion in mid-October to US$1.6 billion, achieving 20% ​​growth in two months. This data means that OpenAI has passed Sales of ChatGPT subscriptions and allowing software developers to access its models through APIs resulted in over $130 million in MRR.

OpenAI leaders believe that ARR can reach $5 billion by the end of 2024, while others believe that a higher number can be reached, which means that OpenAI’s ARR will grow by more than 200% next year. Bloomberg also reported earlier this month that OpenAI was raising new funding at a valuation of $100 billion, which is about 62 times ARR, which would be equivalent to 20 times ARR if $5 billion ARR is achieved by the end of next year.

OpenAI’s competitor Anthropic’s current MRR reaches $17 million, and its current valuation is about 75 times ARR. It is expected that Anthropic ARR will exceed $850 million by the end of 2024.

Sam Altman previously said that OpenAI may need to raise $100 billion in funding to achieve its AGI goal. Wall Street companies and big banks have been among the hottest buyers of generative AI, which can help their software Engineers automatically generate software code and help investment managers make better decisions, and other companies use the technology to create marketing materials and automate customer service interactions.

OpenAI’s technology is powered by Microsoft data centers, and Microsoft takes a cut of the revenue OpenAI generates. Since Microsoft pledged to provide OpenAI with $10 billion in financial support at the beginning of this year, once realized, Microsoft is also expected to receive a large portion of the startup's profits. OpenAI will also receive a certain amount from Microsoft's sales of OpenAI models to Microsoft cloud customers. income.

Under the agreement, Microsoft is the only company that can resell OpenAI technology. The enterprise software giant has attracted some customers who previously purchased the technology directly from OpenAI, which also caused OpenAI to lose some revenue. , because OpenAI itself gets a much higher percentage of sales.

Microsoft is expected to generate $10 billion in revenue from new AI services, including those powered by OpenAI. Microsoft sells OpenAI-powered features in its business software, such as helping customers generate growing documents or Video conference recording summary function. Other features create PowerPoint presentations and other text or images based on a simple description of what the customer wants to see.