TLDR
- OpenAI reached over $20 billion in annual recurring revenue in 2025, jumping tenfold from $2 billion in 2023
- The Microsoft-backed AI startup achieved its 2025 revenue target while CEO Sam Altman aims for hundreds of billions by 2030
- OpenAI expanded its computing capacity 9.5 times from 0.2 gigawatt to around 1.9 gigawatts in 2025
- The company plans to test advertising with free and ChatGPT Go users in the U.S. and acquired health data startup Torch
- Competition intensifies as Google’s Gemini AI closes in on ChatGPT’s market position
OpenAI hit its revenue goal for 2025, reaching over $20 billion in annual recurring revenue. The Microsoft-backed AI startup saw massive growth compared to previous years.
The company’s chief financial officer Sarah Friar announced the achievement. OpenAI’s annual recurring revenue grew from $2 billion in 2023 to over $20 billion in 2025.
This represents a tenfold increase in just two years. The 2025 figure also exceeds the $6 billion OpenAI generated in 2024.
CEO Sam Altman has set an ambitious target to reach hundreds of billions in revenue by 2030. The recent growth puts the company on a path toward that goal.
OpenAI also expanded its computing infrastructure during 2025. The startup increased its computing capacity 9.5 times from 0.2 gigawatt to around 1.9 gigawatts.
Friar described the expansion as “never-seen-before growth at such scale.” The infrastructure growth supports the company’s expanding operations.
New Revenue Streams and Strategic Moves
The AI startup has not yet achieved profitability despite its revenue growth. OpenAI continues to explore new ways to generate income.
The company announced plans to test advertising in the coming weeks. The ads will appear for free and ChatGPT Go subscribers in the United States.
OpenAI also made the Go subscription available to users worldwide. This expansion gives more people access to the paid tier.
The startup acquired Torch, a company that aggregates health data. This purchase aims to strengthen OpenAI’s position in AI-powered health applications.
Altman previously stated the revenue growth would fund the company’s infrastructure plans. These large-scale projects require substantial financial resources.
Competition in the AI market remains intense. Altman declared a “code red” last month as rivals gain ground.
Google’s Gemini AI is closing in on ChatGPT according to recent data. The search giant’s AI product poses a direct challenge to OpenAI’s market position.
Both startups and established tech companies are competing in the AI space. OpenAI faces pressure from multiple directions as it works to maintain its lead.
Microsoft holds a stake in OpenAI and provides backing for the startup. Analysts give Microsoft stock a Strong Buy rating with 32 Buys and two Holds from 34 analysts over the past three months.
The average Microsoft price target of $631.36 suggests over 37% upside from current levels. OpenAI expanded its computing capacity to 1.9 gigawatts in 2025 while planning to test advertising with U.S. users.
