OpenAI projections suggest no profits until 2029: report
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12 hours ago
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- Microsoft-backed (NASDAQ:MSFT) OpenAI is not expected to earn annual profits until 2029, according to company financial documents obtained by The Information.
- The documents show annual losses could strike as high as $14B in 2026, the report said.
- The projections showed the company reaching annual revenue of $100B in 2029. OpenAI also expects to spend about $200B through the end of the decade, minus stock compensations. Losses between 2023 and 2028 are projected to total $44B.
- The report also found that Microsoft is entitled to 20% of OpenAI’s revenue.
- Last week, OpenAI completed its latest funding round totaling $6.6B, which propelled the company to a $157B valuation. Microsoft and Nvidia (NVDA) both participated in the round.