OpenAI hits landmark $2 billion revenue as growth zooms

Two sources revealed that OpenAI, supported by Microsoft, crossed the $2 billion revenue mark in December.

Livemint (with inputs from Reuters)
Updated9 Feb 2024, 11:14 AM IST
File image: A photo taken shows the logo of the ChatGPT application developed by US artificial intelligence research organization OpenAI
File image: A photo taken shows the logo of the ChatGPT application developed by US artificial intelligence research organization OpenAI (Photo by Kirill Kudryavtsev / AFP))

ChatGPT creator OpenAI has achieved a revenue milestone of $2 billion in December 2023, Reuters reported. Financial Times carried the news first citing two sources from the Microsoft-backed artificial intelligence (AI) start-up.

Earlier on February 9, the company was in the news for founder CEO Sam Altman's reported talks with several potential investors in a bid to raise billions of dollars to set up a chip-making company, according to a report by Bloomberg. The 38-year-old entrepreneur is said to be looking to set up a network of factories to manufacture semiconductors.

Funding Plans

A recent report by Bloomberg highlights that OpenAI's plans for constructing a modern manufacturing facility of high quality would need funding amounting to tens of billions of dollars. The development of a network of such facilities is expected to span several years.

Altman, a key figure in this venture, has engaged in discussions with notable entities for funding, including Sheikh Tahnoon bin Zayed al-Nahyan from the UAE, Taiwan Semiconductor Manufacturing Co (TSMC), and Softbank. Notably, Sheikh Tahnoon, who serves as the national security advisor and is the brother of UAE President Sheikh Mohammed bin Zayed al-Nahyan, oversees significant investment funds in the country.

According to information from the Financial Times, it remains unclear whether the new company will operate as a subsidiary of OpenAI or as a separate entity. However, two sources familiar with the matter mentioned in the report confirm that OpenAI will be the initial client of the new company.

Manufacturing Outlook

A previous Reuters report from last year indicated that OpenAI was exploring the possibility of manufacturing its own chipset and considering potential acquisition options. While the final decision was yet to be confirmed, OpenAI was actively exploring various solutions to address the shortage of AI chips, including diversifying suppliers beyond Nvidia and collaborating with other chip manufacturers.

The rising demand for processors, driven by the increasing interest in artificial intelligence applications since the launch of OpenAI's ChatGPT over a year ago, has led to a significant demand for the required chips.

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First Published:9 Feb 2024, 11:14 AM IST
HomeCompaniesNewsOpenAI hits landmark $2 billion revenue as growth zooms

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