OpenAI has achieved an annual recurring revenue (ARR) of $10 billion, driven by its three main business segments: consumer products, enterprise products, and API services. This figure does not include licensing income from Microsoft (MSFT, Financial) or significant one-time transactions. Compared to last year's ARR of $5.5 billion, OpenAI is expanding at an extraordinary pace. However, this rapid growth comes with substantial costs, as the company experienced an operational loss of about $5 billion last year.
OpenAI aims to reach $125 billion in revenue by 2029. This impressive financial performance supports the company's high valuation. In March, OpenAI completed a $40 billion funding round, setting a record in private tech financing. The company's valuation, based on current revenue, is 30 times its ARR, reflecting strong confidence from major investors like SoftBank, Microsoft, Coatue, Altimeter, and Thrive.
Since the successful launch of ChatGPT's consumer version at the end of 2022, OpenAI has quickly expanded into the enterprise market. As of late March, its global weekly active users surpassed 500 million. The number of paid enterprise users also surged from 2 million in February to 3 million this month.
