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Investing.com -- OpenAI has surpassed $10 billion in annual recurring revenue (ARR), CNBC reported, marking a major milestone less than three years after the debut of its ChatGPT chatbot. The figure, confirmed by a company spokesperson, includes income from its consumer products, business offerings, and its application programming interface (API).
Notably, the total excludes licensing income from Microsoft (NASDAQ:MSFT) and large one-time deals, placing the spotlight on OpenAI’s core product lines as its primary sources of recurring revenue. The San Francisco-based company has experienced rapid commercial expansion as enterprise adoption of generative AI accelerates.
At the same time, OpenAI continues to operate deep in the red, reportedly losing about $5 billion last year, despite nearly doubling its ARR from $5.5 billion in 2023. The company’s aggressive scaling efforts demand capital at a pace few startups can match.
Looking ahead, OpenAI has set a long-term goal of generating $125 billion in revenue by 2029, according to CNBC, citing a person familiar with the matter. That target underscores the company’s ambition to transform AI into one of the tech industry’s most lucrative growth engines.
The meteoric rise in revenue coincides with broader user adoption. OpenAI now counts 3 million paying business customers, up from 2 million just a few months prior, while it reported supporting 500 million weekly active users as of late March.
Its financial momentum also follows a landmark capital raise. In March, the company announced a $40 billion funding round, marking the largest private technology investment in history and solidifying its position as the most valuable startup globally.
With spending and growth both accelerating, the stakes for OpenAI are only rising. Whether the company can sustain its trajectory and meet its lofty revenue goals may determine the shape of the next generation of enterprise AI.