Recent updates on OpenAI (PC:OPAIQ) reveal vital financial developments, particularly its revenue-sharing agreement with Microsoft. In 2024, OpenAI earned around $2.5 billion, sharing 20% of this revenue with Microsoft due to a prior investment. Microsoft, in turn, shares a similar portion of revenue from its Bing and Azure services, although specific amounts are undisclosed. Despite significant revenue growth, OpenAI faces challenges with rising inference costs, reaching approximately $8.65 billion in the first three quarters of 2025. This surge raises concerns about profitability, as operational expenses may exceed earnings. While training costs are mitigated by Microsoft credits, inference costs primarily consist of cash outlays. The financial relationship between OpenAI and Microsoft, coupled with partnerships with AWS and Google Cloud, underscores the complex financial landscape of AI development. As OpenAI targets a $20 billion annualized revenue goal by year-end, effective cost management will be crucial for sustaining growth in the competitive AI sector.
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