OpenAI’s annualized revenue recently topped $1.6 billion on strong growth from its ChatGPT product, up from $1.3 billion as of mid-October, news publication The Information reported on Saturday, citing people who know the figure. The growth is the latest sign that the artificial intelligence startup is making headway in its mission to transform businesses with generative AI technology, which helps automate processes by training models on troves of written works and imagery pulled from the web. The company, valued by private investors at more than $86 billion, is also making progress in its pursuit of artificial general intelligence, or AGI, which would allow computers to create and learn from new data.
However, the business landscape is changing fast, and the road to AGI is complex. Despite a clear roadmap and a deep bench of talent, many observers still need to be convinced that the company will succeed in its quest. AGI is a largely unproven and challenging endeavor that could take years to achieve. In the meantime, rivals are gaining ground and bringing more practical applications to the market.
For example, a rival called Cohere, backed by Amazon and Google, has developed large language models that businesses can use to streamline tasks, much like OpenAI’s chatbots. The model can also be used to generate images, which can help companies visually explain complex concepts. The company’s founder, Naveen Chandrasekaran, told CNBC last week that his firm has already sold its technology to more than a dozen companies.
Meanwhile, Elon Musk’s artificial intelligence venture, xAI, is developing its chatbot, which it hopes to release this year. It is projected to generate more than $850 million in revenue by 2024. Another rival, a startup called Anthropic, is expected to hit the $1 billion mark by 2024 as it builds models that can write computer code and understand natural speech.
The latest figures contrast the company’s dark days in 2022 when its total revenue was only $28 million. The shock of the sudden firing of Altman sent ripples throughout Silicon Valley, with some likening it to the dismissal of Apple’s late CEO, Steve Jobs. This move lives on in tech lore as an example of how to handle a significant company change.
Investors are reportedly planning a pressure campaign to force OpenAI’s management team, led by interim CEO Mira Murati, and other board members to return Altman as CEO. The playbook is said to include a combination of mass resignations by senior researchers, withholding of cloud computing credits from Microsoft, and threats of lawsuits; sources tell Forbes. They want to convince the company’s board to accept Altman back as CEO so it can focus on achieving AGI by 2029. If the group succeeds, it will likely trigger a wave of similar AI startups that aim to replace human labor and judgment with automated tools.