ChatGPT Creator OpenAI Set To Generate $1 Billion In Revenue In Over 12 Months: Report

OpenAI, the creator of artificial intelligence (AI) chatbot ChatGPT, is likely to generate over $1 billion in revenue in the next 12 months.

The company makes money by selling API access to its AI models for developers and enterprises directly. ( Image Source :Getty )

OpenAI, the creator of artificial intelligence (AI) chatbot ChatGPT, is likely to generate over $1 billion in revenue in the next 12 months, says a report by The Information. The Microsoft-backed company is on track to create this revenue via selling AI software and computing capacity that powers it. Besides the viral chatbot ChatGPT, the company makes money by selling API access to its AI models for developers and enterprises directly and through a partnership with Microsoft, which invested over $10 billion into the company in January.

This comes amid a recent analysis by Analytics India Magazine that the company is facing potential financial instability. 

Earlier this year, Sam Altman's venture was valued on paper at $27 billion when investors purchased stock from existing shareholders. The company is said to be generating more than $80 million in revenue each month. In comparison, it was generating $28 million last year. Following its launch in November 2022 and popularity, ChatGPT quickly ascended to the status of the fastest-growing app in history.

However, after an initial surge in user adoption, the company has observed a progressive wane in user engagement during recent months. Data sourced from SimilarWeb reveals a notable contraction in the user base of ChatGPT as of the end of July.

Meanwhile, OpenAI chose its first non-US office in London in June when the company started globally expanding beyond the US. According to the company, London’s "vibrant technology" ecosystem and its exceptional talent make it the ideal location for OpenAI’s first international office. The teams in London will focus on advancing OpenAI’s leading-edge research and engineering capabilities while collaborating on our mission with local communities and policy makers.