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REGULATION
by
6 months ago

ChatGPT currently has 250 million weekly active users and OpenAI can convert free users to the paid product at a rate of 5% to 6%

2024-10-29

REGULATION
by
6 months ago

 

Sarah Friar, OpenAI's CFO, revealed in an interview with Bloomberg TV that 75% of OpenAI's revenue comes from consumer subscriptions, particularly from ChatGPT Plus, which costs $20 per month.

 

Despite the strong consumer demand, OpenAI is also focusing on growing its enterprise business, which includes ChatGPT Team and Enterprise services. The company has already reached 1 million paid users for its corporate versions of ChatGPT.


 


Friar told Bloomberg TV’s Ed Ludlow at the Money20/20 conference in Las Vegas. Currently, OpenAI offers a paid plan for ChatGPT starting at $20 per month, and the company has seen rapid growth in its consumer base.

 

She also emphasized that while OpenAI's enterprise business is still in its early stages, it has already achieved impressive annualized revenue, showing substantial promise for the future.

 

Although OpenAI is primarily known for its consumer-facing product, ChatGPT, the company has been actively expanding into the enterprise sector, targeting businesses and educational institutions with corporate versions of the chatbot.

 

In September, OpenAI announced it had reached 1 million paid users for its enterprise-focused ChatGPT products, which include services like ChatGPT Team, ChatGPT Enterprise, and ChatGPT Edu, designed for universities.

 

Despite this push towards business users, Taylor's comments suggest that OpenAI’s consumer business remains the primary driver of revenue. ChatGPT currently boasts a staggering 250 million weekly active users, and OpenAI has been converting 5% to 6% of its free users into paying subscribers, highlighting the company's success in monetizing its consumer base.

 

However, the rapid growth in revenue comes with operational challenges. OpenAI faces considerable expenses associated with developing and maintaining its increasingly advanced AI systems.

 

To manage these costs, the company recently closed a $6.6 billion fundraising round and secured a $4 billion revolving line of credit from global banks. This influx of capital will be critical for sustaining OpenAI's ambitious plans for the future, particularly its efforts to remain at the forefront of AI development.

 

Taylor underscored OpenAI’s commitment to building "frontier models" of artificial intelligence, with the ultimate goal of developing artificial general intelligence (AGI)—AI that can perform intellectual tasks as well as, or better than, humans. According to Taylor, ensuring that AGI benefits humanity is central to OpenAI’s mission, and this focus drives the company’s long-term strategy.

 

As part of this broader mission, OpenAI has been working to form a global coalition to support the physical infrastructure required for AI advancements.

 

A key component of this effort is the construction of state-of-the-art data centers in the United States, with the capacity to generate as much as 5 gigawatts of power. These data centers will play a vital role in powering the next generation of AI technologies.

 

"Infrastructure is destiny," Taylor remarked, referring to the company's focus on building the necessary technological foundations to support its AI ambitions. He acknowledged that the company is navigating new territory, but remains confident that its infrastructure plans will position OpenAI at the cutting edge of AI development for years to come.

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