OpenAI is poised to dramatically increase its revenue to an estimated $11.6 billion in 2025, up from a projected $3.7 billion in 2024, according to sources familiar with the situation. As part of this growth strategy, Thrive Capital is set to invest over $1 billion in OpenAI’s current $6.5 billion fundraising round, which will allow Thrive an exclusive opportunity to invest an additional $1 billion next year at the same valuation, contingent upon OpenAI meeting specific revenue targets.
Despite these ambitious forecasts, OpenAI anticipates losses of up to $5 billion this year, largely due to high spending on computing power. The current funding round, primarily structured as convertible debt, is expected to close by the end of next week and could value the company at $150 billion, reinforcing its position as one of the most valuable private enterprises globally.
This valuation hinges on a complex restructuring plan aimed at changing the governance of OpenAI’s non-profit board and lifting limits on investment returns. While there is no established timeline for this conversion, it represents a significant shift in OpenAI’s operational model.
Thrive Capital, which led OpenAI’s previous funding round, is contributing $1.2 billion through a mix of its own funds and a special purpose vehicle for smaller investors. Other notable participants in the funding round include Microsoft, Apple, Nvidia, and Khosla Ventures; however, they were not afforded the same option for future investment at the current valuation.
OpenAI’s revenue projections exceed CEO Sam Altman’s earlier estimate of $1 billion for this year, primarily driven by corporate service sales and subscriptions to its flagship product, ChatGPT. The chatbot is expected to generate $2.7 billion in revenue this year, a significant increase from $700 million in 2023, with approximately 10 million paying users at a monthly subscription fee of $20.
The details regarding Thrive’s additional investment option and OpenAI’s financials were initially reported by the New York Times on Friday.
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