Home” Artificial intelligence” OpenAI Revenues $1.5 B/Year and Growth Path to $100 Billion
Kelvin Mu, Translink Capital, approximates that OpenAI’s $1.5 billion in profits is split quite equally today in between B2C (GPT plus memberships) and B2B (API tokens).
B2B will be the bigger future profits.
For B2C:
The overall TAM has to do with $10-20B. Tech incumbents make more now. Google ($280B), Microsoft ($218B), and Meta ($117B).
The breakeven for the $20/month GPT+ membership cost has to do with 50 pages of text output daily at the present token expense. There are presently about 3 million clients paying $240 each year for about $700 million in income.
Nextbigfuture notes the token and other expenses might reduce with more effective future AI. The B2C TAM might increase if AI has the ability to provide more future consumer worth.
For B2B:
The overall TAM at $200B+ under existing token rates. This presumes an addressable population of 2 billion and an ARPU of a minimum of $100.
In October, 2023, Sam Altman stated the OpenAI runrate was $1.3 billion. This is most likely $1.5 billion now. The B2B part is the distinction in between the runrate less the B2C quote.