OpenAI, backed by Microsoft (MSFT, Financials), generates about 75% of its revenue from consumer subscriptions, according to Chief Financial Officer Sarah Friar, Bloomberg reported.
The consumer strategy of the firm for its ChatGPT product begins at $20 a month. The Bloomberg article claims that OpenAI is turning 5% to 6% of its free users into paying memberships. Bloomberg says ChatGPT has 250 million weekly active users.
OpenAI also emphasizes corporate users. The firm said in September that, among its corporate productsChatGPT Team, Enterprise, and ChatGPT Eduit had over a million paying customers. Friar observed that while still under development, the area dedicated to businesses is already profitable.
The creation and running of OpenAI’s artificial intelligence systems carry large expenses. Bloomberg reports that the corporation obtained a $4 billion revolving line of credit and received $6.6 billion in a fundraising round earlier this month.
Friar also said the business is working on increasing infrastructure, including data centers in the United States able of producing up to 5 gigawatts of electricity to support its AI activities.
This article first appeared on GuruFocus.
