The AI boom continues to be beneficial for the likes of OpenAI, which has witnessed a dramatic increase in its annualized revenue, reaching $3.4 billion, according to a report by The Information. This remarkable growth represents a doubling of revenue over the past six months, a significant leap from the $1.6 billion reported at the end of 2023 and $1 billion a year prior.

OpenAI’s financial success stems from a diversified revenue stream, with subscriptions and developer access forming the cornerstones. The premium version of ChatGPT, which offers higher messaging limits and additional features, has been a substantial revenue generator. Subscribers pay a minimum of $20 per month, contributing to the steady cash flow that has fueled OpenAI’s growth. Furthermore, developers who integrate OpenAI’s large language models into their applications and services constitute another major revenue stream. This integration grants developers access to OpenAI’s AI technology, enabling them to enhance their offerings with features like powerful chatbots or advanced text generation capabilities.

In addition to these primary revenue channels, OpenAI benefits from a lucrative partnership with Microsoft. This collaboration, focused on integrating OpenAI’s AI models into Microsoft’s Azure cloud computing platform, generates approximately $200 million annually, and Azure’s business clients leverage these AI models. To support its rapid expansion and initiatives, OpenAI has also recently bolstered its executive team with key appointments. Sarah Friar, the former CEO of Nextdoor, has been named Chief Financial Officer, and Kevin Weil, formerly of Planet Labs, has been appointed Chief Product Officer.

Despite the impressive revenue figures, an OpenAI spokesperson has contested the accuracy of some details reported by The Information, although specifics on which details are disputed were not provided. OpenAI has declined to comment further on the matter as well. This development comes on the heels of iPhone-maker Apple announcing a collaboration with OpenAI to integrate ChatGPT into its operating systems, including iOS, iPadOS, and macOS. This integration will enable Apple’s voice assistant, Siri, to utilize ChatGPT’s advanced capabilities for answering user queries. Although the financial terms of this deal remain undisclosed, the partnership is expected to significantly enhance Siri’s functionality