Sarah Friar, CFO of Microsoft-backed OpenAI, highlighted the company’s soaring revenue amid challenges in meeting the high computing demands of AI. OpenAI is heavily reliant on GPUs, prompting it to collaborate with partners like Oracle and CoreWeave while maintaining a crucial partnership with Microsoft. Following the launch of ChatGPT in late 2022, OpenAI anticipates tripling its revenue to $12.7 billion this year and achieved a milestone of $10 billion in annual recurring revenue. CEO Sam Altman predicts ongoing demand will require significant investment in data centers, potentially in the trillions. Despite this growth, OpenAI is seeking external funding, discussing a $6 billion share sale at a $500 billion valuation after a $40 billion funding round earlier this year. The recent release of ChatGPT-5 received mixed reviews, yet the company quickly restored access to older models for users. Meanwhile, MSFT stock analysts maintain a Strong Buy rating, projecting a 23.4% upside.
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