OpenAI's annualized revenue hits $10 billion, up from $5.5 billion in December 2024
OpenAI's annualized revenue hits $10 billion, up from $5.5 billion in December 2024
reuters.com
OpenAI's annualized revenue hits $10 billion, up from $5.5 billion in December 2024
reuters.com
Can someone tell me if this is bad, good or normal?
It's...weird? Not normal, anyway.
Usually $10 billion worth of revenue has obvious products, services and outcomes it to point to.
$10 billion is a difficult to understand amount of money, and unusual for a relatively new software as a service company.
So OpenAI doubling in revenue and hitting those kinds of numbers this soon is, odd. Unexpected.
To speculate a bit, it may be the kind of fortune enjoyed by folks who sold mining equipment to gold diggers during the gold rush.
There is presumably lots of speculative investment money flowing to companies that are promising big rewards from novel applications of the OpenAI technology. Of course they have to purchase the technology today, to deliver the huge novel profits next year...
I base this speculation the observation that there's usually sizeable amounts of money chasing hot new technologies.
6 million units at $700 a pop is $4.2 billion in revenue. Much closer to 1/2 of $10 billion than 1/10.
Apple has never made more money from the App Store than from iPhone hardware sales. When the iPhone launched the App Store didn’t exist yet. Over time, Apple’s revenue from services (including the App Store) has grown dramatically to around $26 billion per quarter today, though that is still less than what they earn in iPhone sales (a bit over $50 billion per quarter in 2024).
That may mean that many doctors and lawyers use ChatGPT.
They're giving OpenAI more leverage to have a strong IPO in the future.
And now the expenses…?
🦗🦗🦗
$5B loss last year.