futuresearch.ai | Report 3Li1

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Sources of OpenAI's reported $3.4B ARR on June 12 2024

Sources of OpenAI's reported $3.4B ARR on June 12 2024

Derivation with full numbers in this report. See the companion piece for visualizations and implications.

Key Parameter	Value	Source
ARR from ChatGPT Plus, from 7.72 million subscribers at $20 per month $(R_{Plus})$	$$1.9 B USD/year (50% CI: [1.8 B, 2 B])$	1.1
ARR from ChatGPT Enterprise, from 1.19 million seats at $50 per month $(R_{Enterprise})$	$$714 M USD/year (50% CI: [664 M, 764 M])$	1.2
ARR from ChatGPT Team, from 980,000 seats at $25 per month $(R_{Team})$	$$290 M USD/year (50% CI: [230 M, 360 M])$	1.3
ARR from the GPT-4 API $(R_{API})$	$$496 M USD/year (50% CI: [396M, 595M])$	see below

OpenAI's revenue comes primarily from ChatGPT and its API. The share of revenue from the API therefore is approximately equal to total revenue minus the revenue from ChatGPT divided by the total revenue. It was necessary to make several assumptions when estimating revenue from ChatGPT, and we made conservative choices when doing this, such that revenue from ChatGPT is plausibly substantially higher than reported here but is unlikely to be significantly lower.

The revenue from ChatGPT is the sum of the revenue from the three available plans:

ChatGPT Plus, for individual paying subscribers
ChatGPT Teams, for small teams of users within an org
ChatGPT Enterprise, for large allocations of seats in an enterprise

On June 12, 2024, Sam Altman claimed that OpenAI's ARR had reached $3.4 billion[4], up from $2 billion in February. The estimates for the different plans are derived in separate calculations, accessible via the subquestions visible on the sidebar.

R_{API} = R_{Total} - (R_{Plus} + R_{Enterprise} + R_{Team}) = 3.4 B - (1.9 B + 714 M + 290 M) = $496 M

Supporting Evidence

[1.1]
FutureSearch's answer toARR from ChatGPT Plus as of June 12, 2024is
$1.9 B USD/year$
[1.2]
FutureSearch's answer toARR from ChatGPT Enterprise as of June 12, 2024is
$714 M USD/year$
[1.3]
FutureSearch's answer toARR from ChatGPT Team as of June 12, 2024is
$290 M USD/year$
[4]
According to Sam Altman, the CEO of OpenAI, the AI research and development company that owns and operates ChatGPT, OpenAI has more than doubled its annualized revenue to $3.4 billion in the past six months.
www.theinformation.com/articles/openais-annualized-revenue-doubles-to-3-4-billion-since-late-2023

1
Sources of OpenAI's reported $3.4B ARR on June 12 2024

Sources of OpenAI's reported $3.4B ARR on June 12 2024

Derivation with full numbers in this report. See the companion piece for visualizations and implications.

Key Parameter	Value	Source
ARR from ChatGPT Plus, from 7.72 million subscribers at $20 per month $(R_{Plus})$	$$1.9 B USD/year (50% CI: [1.8 B, 2 B])$	1.1
ARR from ChatGPT Enterprise, from 1.19 million seats at $50 per month $(R_{Enterprise})$	$$714 M USD/year (50% CI: [664 M, 764 M])$	1.2
ARR from ChatGPT Team, from 980,000 seats at $25 per month $(R_{Team})$	$$290 M USD/year (50% CI: [230 M, 360 M])$	1.3
ARR from the GPT-4 API $(R_{API})$	$$496 M USD/year (50% CI: [396M, 595M])$	see below

The revenue from ChatGPT is the sum of the revenue from the three available plans:

ChatGPT Plus, for individual paying subscribers
ChatGPT Teams, for small teams of users within an org
ChatGPT Enterprise, for large allocations of seats in an enterprise

R_{API} = R_{Total} - (R_{Plus} + R_{Enterprise} + R_{Team}) = 3.4 B - (1.9 B + 714 M + 290 M) = $496 M

Supporting Evidence

[1.1]
FutureSearch's answer toARR from ChatGPT Plus as of June 12, 2024is
$1.9 B USD/year$
[1.2]
FutureSearch's answer toARR from ChatGPT Enterprise as of June 12, 2024is
$714 M USD/year$
[1.3]
FutureSearch's answer toARR from ChatGPT Team as of June 12, 2024is
$290 M USD/year$
[4]
According to Sam Altman, the CEO of OpenAI, the AI research and development company that owns and operates ChatGPT, OpenAI has more than doubled its annualized revenue to $3.4 billion in the past six months.
www.theinformation.com/articles/openais-annualized-revenue-doubles-to-3-4-billion-since-late-2023