OpenAI Revenue Target Hits $20 Billion as Company Rejects Government Backing

TLDR

• OpenAI CEO Sam Altman says the company will hit $20 billion in annualized revenue for 2025, up from $13 billion projected in September
• The AI startup plans to grow revenue to hundreds of billions by 2030 while currently valued at $500 billion but still unprofitable
• OpenAI committed to $1.4 trillion in infrastructure deals to build AI data centers
• CFO Sarah Friar and CEO Sam Altman both clarified OpenAI does not want government financial guarantees
• White House advisor David Sacks confirmed no federal bailouts will be offered to AI companies

OpenAI CEO Sam Altman announced Thursday the company expects to generate over $20 billion in annualized revenue for 2025. This represents a substantial jump from the $13 billion figure CFO Sarah Friar cited just two months ago in September.

The ChatGPT maker has set long-term goals of reaching hundreds of billions in annual revenue by 2030. Despite a current valuation of $500 billion, OpenAI continues to operate without turning a profit.

The company launched ChatGPT in late 2022, triggering rapid commercial expansion. OpenAI started as a nonprofit research organization in 2015 before shifting to a commercial structure.

Altman explained on X that OpenAI is constructing infrastructure for an AI-powered future economy. He said the company’s research program shows this is the right time to invest and scale up technology.

The startup has entered into more than $1.4 trillion worth of infrastructure agreements in recent months. These contracts focus on building the data centers OpenAI claims are necessary to handle increasing demand for its AI services.

Infrastructure Spending Sparks Debate

The enormous infrastructure commitments have led investors to question OpenAI’s financing strategy. Altman noted that massive infrastructure projects require considerable time to build.

He stressed the company needs to begin construction now given lengthy development timelines. The infrastructure spending represents OpenAI’s major wager on AI’s economic future.

CFO Sarah Friar attracted attention this week after discussing potential financing mechanisms at an industry event. She mentioned forming an ecosystem with banks, private equity firms, and possibly a federal “backstop” to help fund semiconductor investments.

No Government Support Requested

Friar corrected her remarks Wednesday evening through a LinkedIn post. She admitted her use of “backstop” created confusion about her intended meaning.

Friar clarified she was arguing that American technology leadership requires cooperation between private companies and government. She confirmed OpenAI is not requesting government backstops for infrastructure investments.

David Sacks, President Trump’s AI and crypto advisor, stated Thursday that federal bailouts for AI companies will not happen. He posted that if one major AI company fails, another will emerge to replace it.

Altman made clear OpenAI neither has nor wants government guarantees for its data centers. He argued taxpayers should not rescue companies that make bad business decisions.

The CEO said if OpenAI’s strategy proves wrong, the company alone will face the consequences. Altman wrote that markets, not government, will address any failures.

Company Confident Despite Risks

Altman said OpenAI feels positive about its strategic direction based on the company’s current position. He acknowledged the possibility that OpenAI’s projections could be incorrect.

The CEO emphasized this is the bet OpenAI is making on AI’s future. The company’s revenue trajectory will depend on successfully executing its infrastructure buildout and maintaining customer demand for AI products.

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