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OpenAI Forecasts Massive Revenue Growth to $12.7 Billion Despite Rising Competition

27 March 2025
in Business, News
Reading Time: 3 mins read
109 3
Home Business

OpenAI is reportedly expecting significant revenue growth, projecting to more than triple its earnings to $12.7 billion this year, despite increasing competition from companies like DeepSeek.

The company anticipates revenue will exceed $29.4 billion by 2026, highlighting its AI subscription services’ strong adoption and commercial success.

According to Bloomberg, ChatGPT primarily generates revenue through paid software subscriptions for individuals and businesses, boasting a significant milestone of one million corporate users by September of the previous year. To further enhance its revenue, OpenAI has launched a premium ChatGPT Pro option priced at $200 monthly. Despite experiencing impressive revenue growth, OpenAI anticipates it will not achieve positive cash flow until 2029 when it projects revenues will surpass $125 billion.

OpenAI is close to finalizing a $40 billion funding round led by SoftBank Group, which could potentially value the company at up to $300 billion. Additionally, the company is considering a shift from its current nonprofit business model to a for-profit venture.

Meanwhile, Chinese AI firms are advancing rapidly, posing an increasing challenge to US-based leaders like OpenAI. Introducing models such as DeepSeek’s “R-1” has prompted a wave of competitive AI solutions from other major Chinese technology companies, including Baidu with its “Ernie X1” and Alibaba Group, which recently launched a new open-source AI model on March 26th.

Tencent Holdings has joined the competitive landscape of AI chatbots with a new offering developed by its subsidiary, Ant Group Co. Meanwhile, DeepSeek unveiled its latest version, DeepSeek-V3-0324, on March 24th. OpenAI is also making strides with the upcoming releases of GPT-4.5 and GPT-5, with Sam Altman highlighting that GPT-5 will feature an enhanced intelligence level for Plus and Pro subscribers, including capabilities like voice interaction, canvas support, search functions, and deep research tools. In the US market, OpenAI faces competition from companies such as Anthropic, DeepMind, xAI, and Google’s Gemini.

 

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

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