OpenAI's revenue on track to reach $1.3 billion this year: Report

ChatGPT developer OpenAI is reportedly going to make $1.3 billion in revenue this year, according to its CEO Sam Altman, amid reports that the AI company is witnessing a slow down in sales.

Microsoft-backed AI company is apparently generating more than $100 million per month, up 30 per cent from earlier this year, reports The Information, citing sources.

“OpenAI is generating revenue at a pace of $1.3 billion a year, CEO Sam Altman told staff this week,” the report mentioned.

For 2022, the company's revenue was just $28 million.

“The revenue pace, largely from subscriptions to its conversational chatbot, represents remarkable growth since the company launched a paid version of ChatGPT in February,” according to the report.

OpenAI's GPT large language models (LLMs) have now become an integral piece of Microsoft's latest product portfolio.

The latest OpenAI revenue report came as according to data from market intelligence firm Appfigures, ChatGPT witnessed more than 30 per cent revenue growth in the last couple of months but now, the rate at which revenue grew is actually the lowest to date, at just 20 per cent (as of September).

Although 20 per cent growth is still “amazing especially when we're looking at millions, it's lower than the previous months which were in the 30s,” the report noted.

The upgraded ChatGPT+ subscription service costs $19.99 per month that offers faster response times, priority access at peak times and early access to new features and improvements.

“Our estimates show ChatGPT earned $3.2 million in September from the App Store and Google Play. That is net which means what OpenAI gets to keep after Apple and Google take their fees,” Appfigures said in its report.

Around 15.6 million people downloaded OpenAI's ChatGPT app in September. Last month, OpenAI said it expected to reach $1 billion in revenue in 2023.

Altman-run OpenAI is also reportedly raising funds at a valuation of $80-$90 billion via sale of existing shares.