OpenAI Targets $125 bn Revenue by 2029

OpenAI has surpassed $10 billion in annual recurring revenue (ARR), less than three years after launching ChatGPT, according to the company.

The figure includes revenue from ChatGPT consumer and business products and its API, but excludes licensing fees from Microsoft and one-time deals.

This marks a dramatic jump from the $5.5 billion ARR it posted in 2023. However, that growth has come at a cost—OpenAI lost around $5 billion last year as it ramped up infrastructure and talent investments.

According to a person familiar with internal plans, OpenAI is targeting $125 billion in revenue by 2029.

This ambition helps contextualise its recent $40 billion funding round—the largest private tech deal ever—which values the company at roughly 30 times revenue.

The startup now serves 500 million weekly active users and over three million paying business customers, reflecting sustained demand for generative AI tools from individuals and enterprises alike.

Recently, it was revealed that OpenAI competitor xAI is projecting more than $13 billion in annual earnings by 2029, according to figures shared by Morgan Stanley, which is arranging a $5 billion debt sale.

The bank provided select investors—those committing at least $50 million—access to xAI’s financials.

xAI anticipates reaching $1 billion in gross revenue by year-end, with a dramatic surge to $13 billion by 2029.