Microsoft-Backed OpenAI Hits $10B Annual Recurring Revenue Milestone

OpenAI, the artificial intelligence startup heavily backed by Microsoft, has reached $10 billion in annual recurring revenue less than three years after launching ChatGPT. The figure captures sales from consumer and enterprise products but excludes Microsoft licensing fees and one-time deals.

Despite the revenue achievement, OpenAI remains unprofitable with $5 billion in losses during 2024. The company recently closed a record $40 billion funding round at a valuation that appears justified by its growth trajectory, though no timeline exists for an IPO or profitability.

While targeting $125 billion revenue by 2029, OpenAI's financial performance reflects both the explosive demand for generative AI tools and the capital-intensive nature of developing frontier models. The milestone underscores how quickly AI has moved from research labs to commercial viability.