On $3.7 billion in revenue, OpenAI expects to lose around $5 billion this year.

OpenAI, the organization behind ChatGPT, is projected to incur approximately $5 billion in losses against an anticipated revenue of $3.7 billion for the current year, as confirmed by CNBC. The company reported a revenue of $300 million last month, reflecting a staggering increase of 1,700% compared to the same period last year.

Furthermore, OpenAI is forecasting sales of $11.6 billion for the upcoming year, according to a source familiar with the situation who requested anonymity due to the confidential nature of the information.

The New York Times initially disclosed details regarding OpenAI’s financial status on Friday after reviewing internal documents, although CNBC has not had access to these financial records. OpenAI, which receives backing from Microsoft, is currently engaged in a funding round that could elevate the company’s valuation to over $150 billion. Thrive Capital is spearheading this funding initiative with plans to invest $1 billion, and Tiger Global is also expected to participate.

In an email to investors on Thursday, OpenAI’s Chief Financial Officer, Sarah Friar, indicated that the funding round has attracted more interest than anticipated and is set to conclude by next week. This announcement follows several significant departures from the company, including that of technology chief Mira Murati, who revealed her exit after six and a half years. Additionally, reports have emerged that OpenAI’s board is contemplating a restructuring to transition the organization into a for-profit entity while maintaining its nonprofit segment as a distinct entity, a move that could simplify investment processes and enhance liquidity for employees.

The Times has reported, referencing an analysis conducted by a financial expert who examined OpenAI’s financial documents, that the estimated losses of approximately $5 billion this year are attributed to the expenses associated with operating its services, along with employee salaries and office rental costs. Notably, these expenses do not encompass equity-based compensation, which is one of several significant costs that remain inadequately detailed in the provided documents, according to the publication.

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