OpenAI is aiming for explosive growth in the coming years, with plans to boost its annual revenue to $25.6 billion by 2026.
OpenAI is seeking to nearly triple its current sales of around $4 billion to $11.6 billion by 2025, according to an investor presentation viewed by The Information.
By the following year, the company expects revenues to reach $25.6 billion, with even more lofty goals beyond 2026, targeting $100 billion in revenues by 2029, as reported by the New York Times.
To help achieve these ambitious goals, OpenAI hired Sarah Friar as chief financial officer in June. Friar has been tasked with convincing investors of the company's bold vision, with one source saying she has made the pitch "dead simple" compared to previous versions.
To convince investors, OpenAI is positioning itself as one of the fastest-growing consumer products in tech history, comparing its growth trajectory to that of giants like Google and Facebook. The company claims it is seeing the most rapid revenue growth the industry has ever witnessed.
Seeking fresh capital
Currently, OpenAI is looking to raise up to $7 billion in new funding. Friar needs to secure commitments from deep-pocketed investors to offset the reluctance of some venture capital firms such as Sequoia Capital and companies such as Apple.
According to The Information, technology conglomerate SoftBank and an Abu Dhabi sovereign wealth fund are planning to invest in the funding round. SoftBank alone is expected to contribute $500 million.
The deal includes a clause allowing investors to withdraw their money within two years if OpenAI fails to transition to a purely for-profit structure. The company is also offering a 9% interest rate to sweeten the deal.
Despite the ambitious plans, OpenAI faces significant challenges. The company has lost several key employees in the past year, including technical executives Mira Murati, Ilya Sutskever, and John Schulman. In addition, OpenAI is currently operating at a loss of billions of dollars, largely due to the enormous cost of the computing power required to run its AI models.
