OpenAI’s 1 million Enterprise users don’t come close to covering its massive costs
OpenAI now has more than a million ChatGPT Enterprise users. Hurray! Sort of.
That sounds great until you realize how much OpenAI is spending on operating costs: up to $7 billion this year on training and inference and another $1.5 billion on staff, according to a report from The Information this summer.
While prices per user likely vary by company and usage, let’s say each business seat costs $60 per month (which would be three times what it costs individuals since it comes with added features and safeguards). That would mean OpenAI is making more than $720 million a year off its business customers. A lot! But a far cry from $8.5 billion.
Throw in nearly $1 billion in annual revenues from its API business (again, per The Information), and the organization is still likely staring at a massive operating loss.
Of course, we don’t know how much revenue OpenAI is pulling in from partnerships (though it’s getting nothing from the Apple deal) or personal paid accounts. But if the company was relying on individuals alone, it would have to be a hell of a lot (more than 28 million users, say) to erase all of that red ink!
While prices per user likely vary by company and usage, let’s say each business seat costs $60 per month (which would be three times what it costs individuals since it comes with added features and safeguards). That would mean OpenAI is making more than $720 million a year off its business customers. A lot! But a far cry from $8.5 billion.
Throw in nearly $1 billion in annual revenues from its API business (again, per The Information), and the organization is still likely staring at a massive operating loss.
Of course, we don’t know how much revenue OpenAI is pulling in from partnerships (though it’s getting nothing from the Apple deal) or personal paid accounts. But if the company was relying on individuals alone, it would have to be a hell of a lot (more than 28 million users, say) to erase all of that red ink!
