OpenAI is forecasting explosive growth in revenue to $11.6 billion in 2025 from an expected $3.7 billion in 2024, Reuters news report said.
OpenAI has also projected significant losses this year, potentially as high as $5 billion. These losses are largely driven by high spending on computing power.
OpenAI’s revenue expectations far surpass CEO Sam Altman’s earlier projection of $1 billion for 2024. Its leading product, ChatGPT, is set to generate $2.7 billion this year, fueled by subscriptions from about 10 million paying users.
Meanwhile, Thrive Capital is investing over $1 billion in OpenAI as part of the AI company’s ongoing $6.5 billion fundraising round.
A unique benefit for Thrive is the opportunity to invest an additional $1 billion next year at the same valuation if OpenAI reaches a set revenue target.
The current funding round is structured as convertible debt and is anticipated to close next week, potentially valuing OpenAI at $150 billion. This would solidify its position as one of the most valuable private companies globally. However, the valuation depends on a complex restructuring plan aimed at removing the non-profit board’s control and lifting the cap on investor returns.
Thrive, led by Joshua Kushner, is contributing $1.2 billion from its main fund and a special purpose vehicle, offering smaller investors access. Microsoft, Apple, Nvidia, and Khosla Ventures are also participating in this round, though they lack the same future investment option at today’s valuation that Thrive secured.
