The darling of the artificial intelligence world, OpenAI, is reportedly staring at a $5 billion loss this year despite a 1,700% surge in revenue, CNBC reported.
The creator of ChatGPT has seen revenue of $3.7 billion so far this year, the story continued, and is set to bring in $11.6 billion in sales next year, an unnamed OpenAI claimed.
The New York Times, citing an analysis by a financial professional who reviewed OpenAI documents, said that the roughly $5 billion loss can be put down to running costs, employee salaries and office rent, the report went on.
OpenAI, which has the backing of tech giant Microsoft, is currently working on a funding round that could value the company at more than $150 billion.
OpenAI has been riding a massive wave of popularity since the company launched ChatGPT in late 2022. The company sells subscriptions to various tools and licences its GPT family of large language models, which are powering much of the generative AI boom.
- By Sean O’Meara
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