OpenAI has announced a remarkable achievement, reaching $10 billion in annual recurring revenue, a significant increase from approximately $5.5 billion the previous year.

This growth follows a $40 billion fundraising deal closed in March 2025, which boosted OpenAI's valuation to $300 billion, positioning it among the largest private companies globally.

The surge in revenue underscores the escalating demand for AI technologies across various industries, reflecting a broader trend in the tech landscape.

Most of OpenAI's revenue is derived from business tools and API services, rather than one-time licensing agreements with Microsoft.

Paid subscriptions, including the ChatGPT Pro service priced at $200 per month, account for a substantial 75% of OpenAI's revenue.

As of late May 2025, OpenAI reported 500 million weekly active users and has expanded its paying business customer base to 3 million, up from 2 million just a few months earlier.

The company's growth trajectory accelerated following the release of the consumer version of ChatGPT in late 2022 and the launch of business products in 2023.

Despite the impressive revenue figures, OpenAI faces pressure to rapidly increase revenue due to significant annual losses, primarily attributed to talent acquisition and infrastructure development.

Looking ahead, OpenAI aims to achieve $125 billion in revenue by 2029, with a projected revenue of $12.7 billion for 2025.

In a strategic move, OpenAI recently announced a partnership with Jony Ive to develop 100 million small AI devices, which could potentially generate $1 trillion in revenue.

Investors are closely monitoring OpenAI's progress, as its trajectory reflects broader trends in the AI industry, influencing stock market dynamics.

The reported revenue growth, despite substantial losses, illustrates the typical challenges faced by tech companies during their early growth phases.