OpenAI CEO Sam Altman says the ChatGPT creator’s fastest growth is now coming from its developer platform, not consumer chat products.
In a series of new posts on X, Altman says OpenAI added more than $1 billion in annual recurring revenue (ARR) in just the past month from its API business alone, underscoring how quickly enterprise and developer demand is scaling.
“People think of us mostly as ChatGPT, but the API team is doing amazing work!”
An API (Application Programming Interface) business is a model where a firm provides access to its proprietary AI models or specialized tools through a bridge (the API), allowing other developers and businesses to integrate that intelligence into their own apps without building the tech from scratch.
News of OpenAI’s revenue growth comes as more industry insiders express doubt that the AI startup will survive the intense competition in the AI race. Recently, legendary investor George Noble warned that OpenAI is flashing “all the warning signs” after losing $12 billion in a single quarter. He called OpenAI “chaos dressed up in a $500 billion valuation.”
And AI researcher Gary Marcus said it is within the realm of possibility for OpenAI to be absorbed by Microsoft as the firm loses billions of dollars each month.
Despite the skepticism, OpenAI recorded $20 billion in revenue last year, 10x the figure it printed in 2023 at just $2 billion.
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