Potential valuation jump to $90 bn on the horizon
According to a report by The Information, CEO Sam Altman informed OpenAI staff this week that the Microsoft-backed AI company is generating an annual revenue of $1.3 billion. This translates to over $100 million per month, indicating a notable 30 percent increase since earlier this year. Previous projections estimated OpenAI’s revenue to surpass $1 billion within the following 12 months.
In contrast, The Information had previously disclosed that the company’s revenue for the previous year was a mere $28 million. The rapid growth is attributed to the substantial influx of funds stemming from subscriptions to OpenAI’s highly popular conversational chatbot, ChatGPT. The enhanced subscription service, priced at $19.99 per month,offers faster response times, prioritized access even during peak hours, and exclusive early access to new features and updates.
The figures bring a sense of relief to the company, as it had been grappling with the challenge of sustaining the operation of the chatbot amidst what Altman referred to as “eye-watering” operating expenses.
15.6 million downloads
According to intelligence firm Appfigures, ChatGPT’s mobile app witnessed a record-breaking 15.6 million downloads and generated nearly $4.6 million in gross revenue worldwide through its iOS and Android applications in September.
Nonetheless, the rate of revenue growth has decelerated, with July and August experiencing increases of only 31 percent and 39 percent respectively.
Valuation surge
In the previous year, OpenAI held a valuation of approximately $29 billion. However, according to a recent report by The Wall Street Journal, the company is currently engaged in talks regarding the sale of shares. If successful, this transaction could propel OpenAI’s valuation to an impressive range of $80 billion to $90 billion.