OpenAI has officially surpassed $10 billion in annual recurring revenue, driven by strong demand for its ChatGPT chatbot and related business products.

According to CNBC’s reporting, OpenAI hit this milestone in less than three years since the initial launch of ChatGPT in November 2022. According to an OpenAI spokesperson cited by CNBC, the ARR figure includes revenue from ChatGPT’s consumer and enterprise offerings, along with API services.

The actual revenue figure is likely even larger as reported revenue does not include licensing fees from Microsoft and one-off deals.

Profitability challenges remain

This revenue growth follows OpenAI’s reported $5.5 billion ARR from 2024, effectively nearly doubling in just a year.

However, CNBC notes that the hypergrowth comes at a cost. OpenAI reportedly posted a loss of about $5 billion in the same period, reflecting the capital-intensive nature of AI model development and infrastructure.

Regardless, the revenue milestone adds weight to OpenAI’s lofty valuation. The company raised $40 billion in a record-breaking funding round earlier this year and is now valued at roughly 30 times its current revenue.

Long-term ambitions

OpenAI is also setting its sights even higher, reportedly targeting $125 billion in revenue by 2029, according to CNBC, which cited a person familiar with internal targets.

As of March 2025, the company reported 500 million weekly active users and 3 million paying business customers, up from 2 million just a few months prior.