Cpvr
Rookie Contributor
CNBC has verified that OpenAI is projected to lose around $5 billion this year, despite earning $3.7 billion in revenue, a figure initially revealed by The New York Times. Revenue is anticipated to soar to $11.6 billion next year, according to a source familiar with the matter.
OpenAI, backed by Microsoft, is currently in the midst of a funding round that could value the company at over $150 billion. According to insiders, Thrive Capital is leading this round, aiming to invest $1 billion, with Tiger Global also expected to participate.
Last month, OpenAI generated $300 million in revenue, marking a significant 1,700% increase since early last year. While The New York Times first reported these financial details, CNBC has not directly reviewed the company's financials.
OpenAI's CFO, Sarah Friar, informed investors via email that the funding round is oversubscribed and expected to close within a week. This development follows several key resignations, including CTO Mira Murati, who announced her departure after a six-and-a-half-year tenure.
Additionally, reports have emerged that OpenAI’s board is considering reorganizing the company into a for-profit structure while maintaining a nonprofit segment. This change is said to simplify the company’s structure for investors and provide greater liquidity for employees.
OpenAI’s services have surged in demand since the launch of ChatGPT in late 2022. The company offers subscription-based access to various tools and licenses its GPT models, which are central to the growth of generative AI. Operating these models involves substantial investments in Nvidia’s GPUs.
According to The Times, the estimated $5 billion loss this year stems from operational costs, including salaries and office expenses, with certain costs, such as equity-based compensation, not fully detailed in the documents.
Source: https://www.cnbc.com/2024/09/27/ope...-this-year-on-3point7-billion-in-revenue.html
OpenAI, backed by Microsoft, is currently in the midst of a funding round that could value the company at over $150 billion. According to insiders, Thrive Capital is leading this round, aiming to invest $1 billion, with Tiger Global also expected to participate.
Last month, OpenAI generated $300 million in revenue, marking a significant 1,700% increase since early last year. While The New York Times first reported these financial details, CNBC has not directly reviewed the company's financials.
OpenAI's CFO, Sarah Friar, informed investors via email that the funding round is oversubscribed and expected to close within a week. This development follows several key resignations, including CTO Mira Murati, who announced her departure after a six-and-a-half-year tenure.
Additionally, reports have emerged that OpenAI’s board is considering reorganizing the company into a for-profit structure while maintaining a nonprofit segment. This change is said to simplify the company’s structure for investors and provide greater liquidity for employees.
OpenAI’s services have surged in demand since the launch of ChatGPT in late 2022. The company offers subscription-based access to various tools and licenses its GPT models, which are central to the growth of generative AI. Operating these models involves substantial investments in Nvidia’s GPUs.
According to The Times, the estimated $5 billion loss this year stems from operational costs, including salaries and office expenses, with certain costs, such as equity-based compensation, not fully detailed in the documents.
Source: https://www.cnbc.com/2024/09/27/ope...-this-year-on-3point7-billion-in-revenue.html
