OpenAI CEO Sam Altman Confirms Revenue Exceeds $13 Billion, Addresses Spending and IPO Speculation

During a joint interview on the Bg2 podcast with Microsoft CEO Satya Nadella, OpenAI CEO Sam Altman stated that the company is generating 'well more' than $13 billion in annual revenue. He sounded somewhat defensive when questioned by host Brad Gerstner of Altimeter Capital about how OpenAI plans to fund its substantial spending commitments for computing infrastructure over the next decade.

Altman directly challenged the $13 billion revenue figure, calling it an understatement. He even offered to find buyers for shares of OpenAI, expressing his belief that many would be interested, and jokingly suggested critics writing negative reports could short the stock and 'get burned.' While acknowledging potential risks, such as securing enough computing resources, he emphasized that OpenAI's revenue is 'growing steeply.'

Altman outlined OpenAI's forward-looking strategy, which includes continued growth in ChatGPT, becoming a significant player in AI cloud services, developing a substantial consumer device business, and creating value through AI-driven scientific automation. Microsoft CEO Satya Nadella added that OpenAI has consistently exceeded the business plans presented to Microsoft.

When pressed further on revenue projections and potential IPO timelines, Altman countered speculation about reaching $100 billion in revenue by 2028-2029, suggesting '27 instead. However, he explicitly denied reports that OpenAI plans to go public next year, stating there is no specific date or board decision in place, though he assumes an IPO will happen someday.

Impact This news directly addresses investor concerns about OpenAI's financial sustainability and future growth, crucial for understanding the trajectory of a leading AI company. It boosts confidence in the company's ability to manage its high expenditure while growing revenue, potentially influencing sentiment in the broader AI and technology investment landscape. Rating: 8/10

Difficult terms Annual revenue: The total amount of money a company earns from its business operations over a one-year period. Spending commitments: Promises or agreements made by a company to spend a certain amount of money on specific items or services in the future. Computing infrastructure: The physical hardware, software, and networking components required for data processing and computation, particularly important for AI development. IPO (Initial Public Offering): The process by which a private company sells shares of its stock to the public for the first time, becoming a publicly traded company. Short the stock: A trading strategy where an investor borrows shares of a company's stock and sells them on the open market, hoping to buy them back later at a lower price to profit from the difference.