OpenAI hits $10 billion in ARR just years after launching ChatGPT
OpenAI has reached a major milestone, surpassing $10 billion in annual recurring revenue (ARR), a staggering figure considering it launched its first consumer product, ChatGPT, less than three years ago. The company’s financial performance underscores its rapid ascent as a dominant force in the artificial intelligence industry.
The $10 billion ARR includes revenue from OpenAI's consumer subscriptions, business-oriented ChatGPT services, and API access for developers and enterprises. However, it notably excludes licensing fees from Microsoft and any large, one-off deals. OpenAI’s close relationship with Microsoft — a strategic partner and major investor — continues to be financially significant but remains outside the ARR tally.
This milestone marks an extraordinary leap from the previous year, when OpenAI recorded about $5.5 billion in ARR. Doubling that number in a single year reflects both the surging demand for AI-powered tools and OpenAI's ability to commercialize its offerings at scale. But such rapid expansion has come at a cost: OpenAI reportedly lost around $5 billion in 2024, illustrating the high expenses tied to AI development, infrastructure, and talent.
Looking ahead, the company has even bigger ambitions. According to a source familiar with the matter, OpenAI is targeting $125 billion in revenue by 2029 — a more than tenfold increase over current levels. These figures, first reported by The Information, signal not just growth aspirations but also the scale of investor expectations.
In March, OpenAI closed a landmark $40 billion funding round, the largest private tech deal in history. With this new capital injection, the company now holds a valuation roughly 30 times its current revenue — a steep multiple that reflects sky-high confidence from investors such as Microsoft, SoftBank, Thrive Capital, Coatue, and Altimeter.
The consumer release of ChatGPT in late 2022 was the company’s first major public success, quickly followed by business-grade offerings that catered to enterprise needs. Since then, OpenAI has scaled dramatically. As of late March 2025, the company reported 500 million weekly active users and three million paying business customers — up from two million just one month prior.
This explosive combination of user growth, recurring revenue, and strategic investment is placing OpenAI at the center of a rapidly evolving AI ecosystem. While challenges remain — from regulatory scrutiny to the massive costs of computing power — OpenAI’s current trajectory signals a transformative shift in how AI technologies are commercialized and adopted globally.
