OpenAI Chief Financial Officer Sarah Friar told investors there was a tipping point: the enterprise unit started generating more revenue than the consumer unit, beating analysts’ forecasts.
In closed-door presentations, it was learned that the startup reported annual revenue of $40 billion and that business grew 32% in July. Management also announced personnel changes: Dali Rajic has been named new revenue director, replacing Denise Dresser.
Company representatives have raised concerns about competition with China’s open-source model, pointing to its high maintenance costs and delaying discussions of a possible initial public offering. Additionally, experiments integrating advertising into ChatGPT have increased revenue in this area to $1 billion per year.