OpenAI eyes $40B funding round

[hist78]

"OpenAI is close to finalizing a $40 billion funding round that would lift the company's valuation to $300 billion, according to Bloomberg, citing anonymous sources. That total would make the round, led by SoftBank, the largest single fundraising round in history. Meanwhile, according to anonymously-sourced reports from both Bloomberg and CNBC, OpenAI expects to see its annual revenue triple this year, growing to $12.7 billion from the $3.7 billion it amassed in 2024, though its expenditures remain high."

OpenAI eyes $40B funding round | LinkedIn

OpenAI is close to finalizing a $40 billion funding round that would lift the company's valuation to $300 billion, according to a Bloomberg report, citing anonymous sources.

www.linkedin.com

 

[MKWVentures]

what does the Open AI Income statement look like?

 

[Daniel Nenni]

Sam Altman is certainly a dreamer. According to Bill Gates "Within 10 years, AI will replace many doctors and teachers — humans won’t be needed for most things". I tend to agree and feel that 100% of the workforce can be enhanced by AI which will cause a workforce reduction and job shift like no other. Similar to what spreadsheets did in the 1980s only on a much larger scale.

Chip designing is an example. AI infused tools will "aid" chip designers to be much more productive thus reducing the over all workforce. Just like the pandemic did for strengthening the supply chain, the upcoming economic challenges will push AI into the workforce even faster. Just my opinion of course.

https://www.cnbc.com/2025/03/26/bill-gates-on-ai-humans-wont-be-needed-for-most-things.html

 

[Daniel Nenni]

what does the Open AI Income statement look like?

Just ask ChatGPT:

OpenAI's income statement reflects a company experiencing rapid revenue growth alongside substantial investments leading to significant losses. In 2024, OpenAI generated approximately $3.7 billion in revenue. Axios

Projections for 2025 indicate a more than threefold increase, with expected revenues of $12.7 billion. Bloomberg

Despite this impressive revenue trajectory, OpenAI is incurring considerable expenses related to the development of advanced AI systems. These costs encompass investments in chip development, data centers, and talent acquisition. As a result, the company reported a loss of approximately $5 billion in 2024. GeekWire

OpenAI does not anticipate achieving positive cash flow until 2029, by which time it projects annual revenues to exceed $125 billion. Reuters

These financial dynamics underscore OpenAI's strategic focus on scaling its operations and advancing AI capabilities, with the expectation that current investments will lead to substantial long-term profitability.

 

[MKWVentures]

Just ask ChatGPT:

OpenAI's income statement reflects a company experiencing rapid revenue growth alongside substantial investments leading to significant losses. In 2024, OpenAI generated approximately $3.7 billion in revenue. Axios

Projections for 2025 indicate a more than threefold increase, with expected revenues of $12.7 billion. Bloomberg

Despite this impressive revenue trajectory, OpenAI is incurring considerable expenses related to the development of advanced AI systems. These costs encompass investments in chip development, data centers, and talent acquisition. As a result, the company reported a loss of approximately $5 billion in 2024. GeekWire

OpenAI does not anticipate achieving positive cash flow until 2029, by which time it projects annual revenues to exceed $125 billion. Reuters

These financial dynamics underscore OpenAI's strategic focus on scaling its operations and advancing AI capabilities, with the expectation that current investments will lead to substantial long-term profitability.

I did ask ChatGPT.

It said that my question was "un-American" and that it put in an order to DHS to have me deported to El Salvador

 

[count]

what does the Open AI Income statement look like?

You can guess based on the size of the round.

Most companies raise for 2-3 years of burn. If you call it 2, you expect that they are burning $20b a year. If it's 3 you are talking about $15b a year in burn. I think it's probably somewhere in between those numbers.

Losses were $5b in 2024, and my guess is losses are currently increasing just as quickly as revenues... so likely projecting a $15b loss in 2025, which lines up with the numbers above.

I think OpenAI has enough large investor interest that they can continue to burn $15-20b for a few more years... but what if losses keep going up exponentially? Burn would increase to $40-50b a year and at that point I don't see where the money would come from.

I think this will come to a head in the next 2 years where AI is either profitable or we witness a monumental AI bubble bust. I would personally bet on the latter.

Even if the AI bubble busts I expect it to play out like the .com bubble, where a lot of capital is destroyed but in the long term the technology will still be revolutionary.

 

[Daniel Nenni]

Even if the AI bubble busts I expect it to play out like the .com bubble, where a lot of capital is destroyed but in the long term the technology will still be revolutionary.

I agree, it feels like the Dot Com Bubble only smaller. Datacenters are being delayed or cancelled as we type. Let's see what the April investor calls look like. I'm thinking the semiconductor industry will grow a single digit this year. CAPEX is a bit bumpy.