CoinVoice has recently learned that according to the New York Times, OpenAI expects to incur huge losses this year, but revenue will continue to explode over the next five years as the company increases fees for ChatGPT.
The company expects revenue to reach $3.7 billion in 2024, and ChatGPT expects to generate $2.7 billion in revenue this year, with $1 billion coming from other businesses, according to a filing.
But the New York Times said OpenAI expects to lose $5 billion this year, excluding equity-based compensation. OpenAI's biggest cost is the computing power it receives from its partner and largest investor Microsoft, whose cloud services host OpenAI's products.
Despite this, OpenAIâs revenue hit $300 million in August, up 1,700% since the beginning of 2023, the report added. Growth will continue to soar, with OpenAI predicting revenue will more than triple to $11.6 billion in 2025 and eventually reach $100 billion in 2029. Part of this future revenue will come from an increase in payments from ChatGPT users.
The report said that ChatGPT fees will rise from $20 per month now to $22 by the end of this year, and then increase to $44 over the next five years.
OpenAI declined to comment to The New York Times and did not immediately respond to Fortuneâs request for comment. CNBC separately confirmed the annual revenue and loss forecasts. [Original link]
