ChatGPT's Popularity Comes with a Price
OpenAI, the company behind ChatGPT, is facing significant financial losses despite its massive popularity. The service, which generates around 70% of the company's recurring revenue, is used by 95% of users for free, resulting in substantial losses for the company.
According to a report by The Information, OpenAI collected $4.3 billion in revenue during the first half of 2025 but still posted a net loss of $13.5 billion. The majority of this loss is attributed to the "remeasurement of convertible interest rights," which refers to billions of dollars' worth of convertible equity issued to investors.
95 percent of those using ChatGPT... aren't paying a dime to help stem the losses.
- OpenAI's revenue: $4.3 billion (first half of 2025)
- Net loss: $13.5 billion (first half of 2025)
- Valuation: around $500 billion
Despite these financial challenges, OpenAI is committed to spending over $1 trillion in partnership deals over the next five years. The company's valuation and spending commitments raise questions about its long-term sustainability.
Author's summary: OpenAI faces significant financial losses despite ChatGPT's popularity.
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