OpenAI clocks $10B in ARR driven by ChatGPT adoption

OpenAI has reached $10 billion in annual recurring revenue (ARR), more than doubling from around $5.5 billion last year, as demand for its ChatGPT products continues to surge. 

This development comes less than three years after the San Francisco startup first launched the viral AI chatbot. 

According to a company spokesperson, the ARR figure includes revenue from OpenAI's consumer subscriptions, business offerings, and API usage, but excludes Microsoft licensing income and large one-off deals, reported CNBC. 

Despite rapid growth, the Sam Altman-led firm posted a loss of about $5 billion last year. It added that the firm is reportedly targeting $125 billion in revenue by 2029, according to a person familiar with the matter.

The Information first reported the long-term revenue projection.

OpenAI raised $40 billion in a funding round in March, marking the largest private tech deal on record. As of March 2025, the company reported 500 million weekly active users.

Backed by Microsoft, SoftBank, Coatue, Altimeter, Thrive Capital, and other prominent investors, OpenAI has seen rapid adoption since launching ChatGPT in late 2022. It introduced business offerings the following year and has continued to expand its enterprise footprint.

In May, the AI firm acquired io Products, the AI hardware startup co-founded by former Apple design chief Jony Ive and OpenAI CEO Sam Altman, in a $6.4 billion all-equity deal.  

The acquisition is by far OpenAI’s largest to date and signals the AI firm's entry into the AI-enabled consumer hardware market. It already owns 23% of io Products and is paying $5 billion for the remaining stake in the company.

The deal follows OpenAI’s recent acquisitions of Windsurf, an AI-assisted coding tool, for $3 billion, and analytics startup Rockset last year.