OpenAI doubles annualised revenue to $3.4 billion, says report

livemint.com:

OpenAI is on pace for $3.4 billion of annual revenue, Chief Executive Officer Sam Altman told the company’s staff, according to a person familiar with the matter.In an all-hands meeting Wednesday, Altman said the vast majority of that revenue — about $3.2 billion — comes from OpenAI’s products and services, according to the person, who spoke on condition of anonymity to discuss internal communications. Altman said OpenAI is also on track to generate about $200 million by offering access to its AI models through Microsoft Azure, the person said.Also Read: Musk declares ban on Apple devices in his companies if OpenAI is integrated amid security concernsThe Information was first to report the revenue figure.

The outlet previously reported that annualized revenue was $1.6 billion in late 2023.OpenAI declined to comment.OpenAI has emerged as a driving force in the development of AI, thanks to the viral success of ChatGPT, which helped kick off the frenzy around generative AI. Earlier this year, OpenAI completed a tender offer valuing the startup at $86 billion.In recent months, OpenAI has been working to boost revenue from its AI products by selling services to enterprise customers.

OpenAI has also begun training a more powerful AI model that could help it stay ahead of a growing number of well-funded rivals who are vying for the same users and businesses.Also Read: OpenAI Hires Former Nextdoor Boss as CFO, Taps New Product ChiefThis week, the startup hired Sarah Friar, the former chief executive of neighborhood social networking service Nextdoor Holdings Inc., to serve as its chief financial officer, a role that has gone unfilled at the fast-growing artificial intelligence firm for two years. Friar will help OpenAI continue