The Rise and Rise of OpenAI: Company ‘Reaches $2bn Revenue’

With the ChatGPT creator reportedly hitting a US$2bn revenue milestone, OpenAI is continuing to lead in the field of generative AI development and research

Within five days of OpenAI releasing ChatGPT to the public on 30th November 2022 it had attracted over one million users. One year on and the hype hasn’t died down

Now, according to a report by the Financial Times, the company has reached the $2bn revenue milestone, with investors having previously valued the San Francisco-based startup at more than US$80bn.

Citing two people with knowledge of OpenAI’s finances, the FT reports that the company believes it can more than double this revenue figure in 2025 as the company continues to lead the way in the world of generative AI (Gen AI).

OpenAI: ChatGPT launch has rapidly accelerated interest in Gen AI

Elon Musk, Sam Altman and other investors announced the formation of OpenAI in October 2015. In June 2020, OpenAI announced GPT-3, a language model trained on trillions of words from the Internet. The company also announced that an associated API, named simply ‘the API’, would form the heart of its first commercial product. 

The company’s release of ChatGPT in late 2022 has rapidly accelerated interest in Gen AI, with the tool capable of interacting conversationally, answering follow-up questions, admitting its mistakes, challenging incorrect premises, and rejecting inappropriate requests. 

Following previous investments in 2019 and 2021, in January 2023 Microsoft announced a multibillion-dollar investment in OpenAI, intended to accelerate AI breakthroughs.

The agreement extended the two companies' ongoing collaboration across AI supercomputing and research.

In March 2023 OpenAI announced the launch of GPT-4, the latest iteration in its deep learning model, which it says ‘exhibits human-level performance’ on various professional and academic benchmarks from the US bar exam to SAT school exams.

With a rapid rise in demand, prompted by the launch of ChatGPT, leading to a global shortage of AI chips, OpenAI has reportedly exploring building its own AI chips.

“OpenAI’s potential move into hardware and building its own AI chips comes as no surprise,” Alex White, GM EMEA at Softbank-backed AI startup SambaNova Systems, told Technology Magazine. “OpenAI is trying to reinvent itself as an enterprise business, and that requires the ability to be able to fine tune or build bespoke large language models - and we all know that training models requires vastly more compute power than running the models.”

******

Make sure you check out the latest edition of Technology Magazine and also sign up to our global conference series - Tech & AI LIVE 2024

******

Technology Magazine is a BizClik brand

Share

Featured Articles

How Dell AI & Data Solutions Help Improve Driver Safety

Subaru Corporation is partnering with Dell Technologies to improve driver safety through the powerful combination of AI and high-performance storage

Global Chip Boom Could Impact Technology Supply Chains

With the US and Europe striving to advance chipmaking efforts, a Bloomberg Intelligence report suggests they could steam ahead of Taiwan in the next decade

Dell Technologies: Powering Reliable Global Connectivity

Dell Technologies is announcing new solutions to help communications and service providers (CSPs), so that their systems are faster and more flexible

MWC Barcelona 2024: Unveiling the Future of Technology

Digital Transformation

Google Gemma: An AI Model Small Enough to Run on a Laptop

AI & Machine Learning

Why Tech Leaders Should Attend Sustainability LIVE: Net Zero

Digital Transformation