OpenAI, the creator of ChatGPT, rakes in $80 million monthly revenue
The creator of the popular artificial intelligence bot, specifically the ChatGPT creator of OpenAI, is on track to earn an annual income of more than one billion dollars, as he reportedly earns 80 million dollars per month.
Fortune reports that such earnings could help the company recover from last year’s losses, which doubled to $540 million. The details reveal that ChatGPT creator OpenAI is actually surpassing the revenue figures previously provided to shareholders.
The pace of generating $80 million in revenue on a monthly basis contradicts the company’s earlier expectations of reaching the annual revenue milestone of $1 billion by 2024.
This rapid growth is both astonishing and somewhat expected. Last year, the startup generated only $28 million in annual revenue, but earlier this year, ChatGPT became the fastest growing app in history.
It is worth noting that using the bot is no longer completely free, as it was at its launch. However, ChatGPT’s ability to mimic human conversation and perform tasks such as writing, programming, and analyzing a wide range of topics has attracted global attention. This has not only led people to rush to use the bot but has also spurred other companies to develop their own artificial intelligence (AI) large language models (LLMs).
In addition to gaining fame, this has apparently brought in significant income that can now be used to compensate for last year’s losses.
An OpenAI spokesperson was not immediately available to comment on the company’s earnings, and financial details were first reported by The Information.
The company’s services are reflected in various models of artificial intelligence that power chatbots, as well as in multiple subscription options that offer specific benefits. For example, the startup recently introduced ChatGPT Enterprise, another business version of the bot with enhanced security features and privacy.
This version was launched seven months after ChatGPT creator OpenAI introduced a premium subscription service for dedicated users, priced at $42 per month.
Although there is still a free version of the ChatGPT bot, it is not based on the most advanced GPT-4 model but rather on versions 3 and 3.5. Additionally, the free bot’s internet access is limited until 2021, which means it cannot provide real-time information.
However, the company also generates revenue by selling API access to its artificial intelligence model to other companies. One of those companies is Microsoft, which is entitled to 75 percent of the startup’s profits under their contract until Microsoft’s $13 billion investment in OpenAI is repaid. OpenAI CEO Sam Altman reportedly expects AI ambitions to cost him another $100 billion.