Sam Altman, the chief executive officer (CEO) of OpenAI, said on the 8th (local time) that "we will prioritize growth over revenue, and we plan to continue investing even if it means incurring losses."
During an interview with CNBC on the same day, CEO Altman said, "As long as artificial intelligence (AI) models are showing an increasingly improving growth curve, it is reasonable to endure losses for a considerable period." He added, "(Now) we need to prioritize growth and investments in learning and computational infrastructure over revenue, and it is okay if achieving profitability is delayed as a result."
OpenAI recorded $3.7 billion in revenue last year, more than double the previous year, but it is estimated to have incurred losses of around $5 billion. This year, annual recurring revenue (ARR) is expected to surpass $20 billion, but it remains in a loss position. ARR refers to fixed revenue from subscription services and the like.
CEO Altman explained, "OpenAI can transition to profitability faster than expected if it wants to," adding, "However, since it is not a publicly traded corporation right now, it is free from the pressures of the public market and plans to continue pouring money into learning and computational investments."
OpenAI released its latest AI model, GPT-5, on the 7th. The company stated that GPT-5, which underpins ChatGPT, has improved performance compared to existing models and is particularly more useful in writing and coding.