OpenAI anticipates a revenue jump next year, projecting an increase to $11.6 billion from an estimated $3.7 billion in 2024. Concurrently, Thrive Capital is set to invest over $1 billion in OpenAI’s ongoing $6.5 billion fundraising round.
According to sources familiar with the situation who spoke on Friday, a unique provision allows Thrive the option to invest an additional $1 billion next year at the same valuation, contingent on OpenAI reaching a specific revenue target.
The current funding initiative, structured as convertible debt, aims to be finalised by next week and may position OpenAI with a valuation of $150 billion, securing its place as one of the most valuable private entities globally. This valuation hinges on successfully restructuring to diminish the influence of its non-profit board and lifting the cap on investor returns, a strategy previously disclosed by Reuters.
Thrive Capital, leading this and OpenAI’s prior funding rounds, contributes $1.2 billion through a mix of direct investment and a special-purpose vehicle catering to smaller investors. Other participants in this round include major names like Microsoft, Apple, Nvidia, and Khosla Ventures, though they lack the option for future investment at the current valuation.
Sources did not specify the revenue milestone tied to Thrive’s investment option. Both Thrive and OpenAI have opted not to comment on these developments.
This projection far surpasses the earlier estimates by OpenAI CEO Sam Altman, who forecasted $1 billion in revenue for this year. The company’s primary revenue streams stem from corporate service sales and subscriptions to its chatbot services.
Its flagship ChatGPT is projected to generate $2.7 billion in revenue this year, a substantial rise from $700 million in 2023. Charging a monthly fee of $20, ChatGPT boasts approximately 10 million paying users.