OpenAI’s business is still growing quickly, even after a period of unusual leadership turmoil. According to The Information, the company recently raised its annualized revenue to $1.6 billion, up from $1.3 billion in mid-October.
That 20 percent increase puts fresh attention on the commercial strength behind ChatGPT, OpenAI’s API business, and its complex relationship with Microsoft. It also sharpens the comparison with Anthropic, which remains a significant rival but is described as a distant second in the AI market.
Revenue growth keeps ChatGPT at the center
The clearest driver in the source article is ChatGPT. OpenAI’s growth is attributed to strong ChatGPT performance and the sale of subscriptions, which continue to be a major part of the company’s revenue story.
The reported annualized revenue figure of $1.6 billion represents a run rate based on monthly revenue. The source describes this as equivalent to about $130 million in monthly revenue, calculated as the previous month’s revenue multiplied by 12.
That distinction matters because the number captures current business momentum rather than a completed full-year result. Still, the increase from $1.3 billion in mid-October to $1.6 billion shows that demand remained strong during a period when attention around the company was not limited to product performance.
Subscriptions are only one part of the picture. OpenAI also sells access to the AI models behind ChatGPT through an API. That API business gives companies another route into OpenAI’s technology, separate from consumer-facing or subscription-based use of ChatGPT.
Microsoft is both accelerator and rival
Microsoft sits in a powerful position in OpenAI’s business model. The source describes Microsoft’s Azure cloud as a multiplier because it offers the same models through its own cloud platform.
That arrangement expands the reach of OpenAI’s models. It is especially relevant in Europe, where Microsoft is described as OpenAI’s preferred API partner for privacy reasons.
At the same time, the relationship is not simple. Microsoft is also described as a competitor because it is the only company allowed to resell OpenAI technology. The tradeoff is that Microsoft keeps a significant portion of revenue from those resales.
OpenAI’s margins are better when it sells directly. But the partnership remains deeply connected, with Microsoft said to currently own 49 percent of OpenAI. In practical terms, OpenAI’s growth is tied not only to user demand for ChatGPT but also to the distribution and economics of its Microsoft relationship.
The result is a business structure with two important forces moving at once:
- Direct sales: OpenAI keeps better margins when it sells subscriptions and API access itself.
- Microsoft resale: Microsoft can widen access to the same models through Azure, while retaining a significant share of resale revenue.
Anthropic remains the closest comparison
The source frames OpenAI as the clear dominant company in AI, with Anthropic in second place. Anthropic spun off from OpenAI in 2021 and is reportedly aiming for more than $850 million in annual revenue by the end of 2024.
OpenAI’s internal expectations are much higher. Some OpenAI executives expect the company to reach $5 billion or more in annual revenue by the end of 2024, according to The Information, which cited insiders.
The funding ambitions also show the gap between the two companies. Anthropic is said to be targeting a valuation of $15-18 billion for its next funding round. OpenAI, by contrast, is targeting a valuation of $100 billion.
Those figures highlight the scale of expectations now attached to OpenAI. The company is not just being measured against other startups; it is being evaluated as the leading commercial force in a fast-moving AI industry.
The Sam Altman episode leaves an open question
The source does not state whether OpenAI’s leadership crisis hurt or helped revenue. It says it is unclear if and how the 4.5-day dismissal and reinstatement of OpenAI CEO Sam Altman affected sales growth.
What is clear is that customers noticed. Anthropic reportedly received more than 100 inquiries from OpenAI customers over the weekend of Altman’s dismissal.
That detail matters because it shows how quickly enterprise attention can shift when a core AI supplier appears unstable. Even so, OpenAI’s reported revenue run rate increased, suggesting that the company’s commercial momentum remained intact during the period covered by the article.
The episode also underlines a broader issue for AI companies: customers are buying access not only to models, but also to continuity. For businesses building on AI systems, leadership stability, partner relationships, and long-term access can become part of the buying decision.
Why 2024 looks decisive
The source describes 2024 as a crucial year for AI. Expectations for AI models and their capabilities have risen sharply, helped by the attention generated by OpenAI itself.
That creates pressure on OpenAI, Anthropic, and the wider AI industry. Companies must keep improving their technology while also turning rapid growth into durable businesses.
There is another challenge: landmark court cases are pending over data use and potential copyright infringement. The source says that if those cases are lost, they are likely to have a significant impact on company profitability and the further development of the technology.
For OpenAI, the near-term picture is one of strong revenue growth, broad demand for ChatGPT, and a close but complicated Microsoft partnership. The longer-term picture is less settled. The company is targeting much larger revenue and valuation milestones, but the industry around it still faces legal, commercial, and technical pressure.
That is why the $1.6 billion figure matters. It is not just another growth number. It is a sign that OpenAI’s products are generating meaningful revenue while the company moves into a year that could define the next stage of the AI market.