OpenAI hits $10 Billion in Annual Recurring Revenue

OpenAI has surpassed $10 billion in annual recurring revenue, according to a company spokesperson. This milestone comes less than three years after the launch of ChatGPT. The reported figure includes revenue from consumer-facing products, ChatGPT business offerings, and the application programming interface. It excludes licensing income from Microsoft and large one-time agreements.

Last year, OpenAI had approximately $5.5 billion in recurring revenue. Achieving such rapid growth has required significant investment, with the company posting an estimated $5 billion loss during the same period. OpenAI is targeting $125 billion in annual revenue by 2029, according to a person familiar with the matter. This goal was first reported by The Information.

These figures provide additional context to OpenAI's current valuation. In March, the company closed a $40 billion funding round, setting a record for private technology deals. Based on current revenue, OpenAI is valued at roughly 30 times its annual recurring income.

ChatGPT was released to consumers in late 2022, followed by business products the next year. As of late March, OpenAI reported supporting 500 million weekly active users. Earlier this month, the company announced it had reached three million paying business users, up from two million in February.