| OpenAI is on track to generate annualized revenue of more than $40 billion based on its current performance, according to people familiar with the matter, roughly doubling its run rate from the end of 2025 and bolstering the company's plans for a Wall Street debut. The ChatGPT maker's revenue has accelerated in recent months, driven in part by the growth of its AI coding software, said the people, who spoke on condition of anonymity as the information is not public. The gains also reflect momentum from subscription sales and its nascent advertising business. Its core consumer business continues to grow, too. OpenAI declined to comment. OpenAI is locked in a fierce battle with longtime rival Anthropic PBC to sign up more business customers. Both firms have filed confidential paperwork to go public, with Anthropic expected to IPO as soon as this fall, ahead of OpenAI. ALSO READ: Blocked At Work? OpenAI Employees Have A Secret Weapon For Workplace Roadblocks Once viewed as the underdog, Anthropic has gained traction with AI tools that streamline complex tasks, including coding. Anthropic said in May that its run-rate revenue had crossed $47 billion, though the two firms may not measure it the same way. A company's run rate projects full-year revenue from a shorter period. On Thursday, OpenAI named its second new chief revenue officer in less than a year, tapping a cybersecurity executive to help drive sales growth. As part of an internal announcement for the hire, OpenAI co-founder and President Greg Brockman said the company's annual revenue run rate increased more than 20% month-over-month in July. Sarah Friar, OpenAI's chief financial officer, previously said the company had ended last year with more than $20 billion in annualized revenue. ALSO READ: Sam Altman's Advice To Young Talent: Skip The Wall Street Hierarchy And Build With AI OpenAI has seen a sharp uptick in demand for its AI agents in recent weeks, including Codex for coding and ChatGPT Work for a wider mix of tasks. The company has also cut prices on certain models to better compete for cost-conscious customers against Anthropic and a long list of Chinese rivals. |
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