OpenAI reportedly expects losses of about $5 billion this year. new york times and CNBC.
The Times originally reported that the company that owns ChatGPT had $3.7 billion in revenue this year and expected revenue to rise to more than $11 billion next year.
The Times said the losses were related to general and operating expenses, such as salaries and office rent.
This week, news broke that several top executives have left the company amid reports that the company is looking to restructure as a for-profit company. Company founder Sam Altman said the departure was amicable.
“We are extremely grateful to all of them for their contributions,” Altman added.
As part of the reorganization, OpenAI will become a public benefit corporation and will no longer be governed by a nonprofit board, The Hill reported.
According to the Times, the company plans to raise the price of the paid version of ChatGPT by $2 by the end of the year.
The Hill has reached out to OpenAI for comment on these reports.
