OpenAI Raises $6.6B, But Is Its $100B Revenue Projection Realistic?

OpenAI, the company behind ChatGPT, just secured a $6.6 billion funding round, pushing its valuation to a staggering $157 billion. While investors like Microsoft, Thrive Capital, and Nvidia are betting big on the startup, OpenAI faces mounting questions about its path to profitability.

• Revenue Surge: OpenAI expects to generate $3.7 billion in revenue this year, but it’s burning through $5 billion in costs.
• Ambitious Projections: The company claims it will hit $11.6 billion in revenue next year, and a lofty $100 billion by 2029.
• Costs vs. Usage: Training and running large language models like ChatGPT requires significant computing power, meaning costs rise with increased usage.
• Founder Departures: Several key executives, including CTO Mira Murati, have left, raising questions about leadership stability as OpenAI transitions to a public benefit corporation.

Despite its rapid growth, experts caution that many things must go right for OpenAI to meet these ambitious targets. If GPT-5, the next iteration of its language model, doesn’t deliver a groundbreaking improvement, the company’s runway may shorten significantly.