Sources: OpenAI makes a five-year business plan to meet $1T+ spending pledges; OpenAI currently books ~$13B in ARR, 70% of which comes from consumer ChatGPT use
New revenue lines, debt partnerships and further fundraising targeted to cover enormous costs
You just have to read this from the @FT to know the AI bubble burst is inevitable https://www.ft.com/... Even if OpenAI has booked $13bn in revenues (annualised), what are the operating profit/margins? If revenue go up, will losses narrow?
“OpenAI is working on new revenue lines, debt partnerships and further fundraising as part of a five-year plan to make good on the more than $1tn in spending it has pledged to create world-leading artificial intelligence.” https://www.ft.com/...
Latest OpenAI numbers from the FT: 800m users, 5% paying (40m). $13bn in ARR. Implies a $325 annual ARPU, or $27/month per paying user. 70% of rev from subscriptions, rest is API. $8bn loss in H1, prob $20bn run rate loss now? So basically spending $3 for each $1 in revenue.
Looks like deceleration. $5.5bn, end-December 2024. $10 billion, end-May/early June 2025. $12 billion, end-July. $13bn, end-September 2025. That's roughly a $1bn improvement per month until end-July, but just $0.5 billion per month since then. $1bn per month on a higher base
OpenAI is on track to make $13B this year and has committed to spend $1T on AI infrastructure from AMD, Nvidia and Oracle. — We're going to see aggressive growth moves from OpenAI over the next few years. A TikTol for deepfakes (Sora), erotica in ChatGPT and more sycophantic A…