Financial scrutiny of OpenAI is intensifying amidst prospects of an IPO, fueled by leaked documents revealing its complex financial ties with Microsoft. Tech blogger Ed Zitron’s analysis shows OpenAI’s revenue from Microsoft, including about 20% from Bing and Azure services that utilize its AI models. This revenue-sharing model complicates the understanding of financial transactions, as Microsoft does not separately disclose earnings from these services.
Projected revenues suggest OpenAI could achieve at least $2.5 billion in 2024 and around $4.33 billion in early 2025. CEO Sam Altman anticipates annual revenues exceeding $13 billion, aiming for a run rate above $20 billion in 2025. However, costs remain significant; OpenAI’s estimated expenditure on AI inference may eclipse its income, with projections of $3.8 billion in 2024 and up to $8.65 billion in early 2025. This highlights the substantial financial challenges tied to scaling AI technologies effectively.
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