OpenAI's financial situation has caused heated discussion recently, and the editor of Downcodes will sort out the key information for you. According to reports, OpenAI is expected to lose about US$5 billion in 2024, but its revenue will reach US$3.7 billion and show strong growth momentum. There are both worrying huge losses and exciting revenue growth. What is the future development prospect of OpenAI? Let’s dig into it together.
OpenAI's financial health has attracted a lot of attention recently. According to CNBC, OpenAI is expected to lose about $5 billion this year on revenue of $3.7 billion.
The news was first disclosed by the New York Times and later confirmed by CNBC. Remarkably, OpenAI’s revenue last month reached US$300 million, a growth rate of 1,700% compared to the beginning of last year. If this trend continues, OpenAI's sales are expected to reach $11.6 billion next year.
OpenAI, a partner of Microsoft, is undergoing a round of financing and may be valued at more than $150 billion. According to people familiar with the matter, this round of financing is led by Thrive Capital, which plans to invest US$1 billion, and Tiger Global is also preparing to participate. Sarah Friar, OpenAI's chief financial officer, said in an email to investors on Thursday that the round has been oversubscribed and is expected to close next week. It is worth noting that this news was announced just one day before technical head Mira Murati announced her resignation.
In addition to the news of financing, OpenAI is also considering reorganizing its corporate structure, planning to transform into a for-profit company while retaining the non-profit arm as an independent entity. People familiar with the matter said that such a structure would make it easier for investors to understand the company's operations and also help OpenAI's employees achieve better liquidity.
Since the launch of ChatGPT at the end of 2022, OpenAI's various services have been warmly welcomed by the market. The company currently offers a variety of tools as a subscription service and licenses its GPT series of large-scale language models. These technologies are driving the rapid development of generative artificial intelligence. In order to support the operation of these models, OpenAI must invest heavily in Nvidia's graphics processing units.
The New York Times pointed out based on professional analysis of OpenAI's financial documents that this year's losses mainly come from expenses such as operating costs, employee salaries, and office rent. These expenses do not include equity-based compensation and other large expenses that were not explained in detail.
Highlight:
? OpenAI expects to lose about US$5 billion this year on revenue of US$3.7 billion, and sales may reach US$11.6 billion next year.
? The company is conducting oversubscribed financing, with a valuation expected to exceed US$150 billion, attracting the participation of many investors.
? OpenAI is considering reorganizing into a for-profit company to increase transparency and help employee mobility.
All in all, although OpenAI is facing huge losses, its rapid growth in revenue and the huge financing that is about to be completed demonstrate the company's strong development potential and market prospects. In the future, the development of OpenAI deserves continued attention. The editor of Downcodes will continue to bring you more technology information.