Internal OpenAI projections suggest no profits until 2029, MSFT allegedly entitled to 20% of OpenAI’s revenue

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  • Microsoft-backed (NASDAQ:MSFT) OpenAI is not expected to earn annual profits until 2029, according to company financial documents obtained by The Information.
  • The documents show annual losses could spike as high as $14B in 2026, the report said.
  • The projections showed the company reaching annual revenue of $100B in 2029. OpenAI also expects to spend about $200B through the end of the decade, minus stock compensations. Losses between 2023 and 2028 are projected to total $44B.
  • The report also found that Microsoft is entitled to 20% of OpenAI’s revenue.
  • Last week, OpenAI completed its latest funding round totaling $6.6B, which propelled the company to a $157B valuation. Microsoft and Nvidia (NVDA) both participated in the round.
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https://www.msn.com/en-us/money/other/openai-projections-suggest-no-profits-until-2029-report/ar-AA1rZ8QC