OpenAI has significantly increased its financial performance, achieving an annual recurring revenue (ARR) of $20 billion in 2025, a remarkable rise from $6 billion in 2024 and just $2 billion in 2023. This achievement was announced by the company’s chief financial officer, Sarah Friar, in a blog post on January 18, 2025. The surge in revenue highlights OpenAI’s growing influence in the field of artificial intelligence (AI).
OpenAI has also expanded its computational capabilities during this period. Its compute capacity increased from 0.2 gigawatts (GW) in 2023 to 0.6 GW in 2024 and is projected to reach approximately 1.9 GW in 2025. Friar noted that increased compute power could have accelerated customer adoption and monetization. She emphasized the importance of compute, describing it as “the scarcest resource in AI,” and detailed how OpenAI has transitioned from relying on a single compute provider to establishing “a diversified ecosystem.”
Strategic Shifts and New Revenue Models
According to Friar, OpenAI is managing its compute portfolio in a way that integrates AI into users’ daily workflows. “As these systems move from novelty to habit, usage becomes deeper and more persistent,” she explained. This predictability enhances the platform’s economics and supports long-term investments.
In addition to its subscription offerings, OpenAI has introduced a free, ad-supported tier to its business model, which now includes consumer and team subscriptions along with usage-based application programming interfaces (APIs). Friar described this model as one that “closes the loop,” facilitating broader access to AI technologies.
Looking ahead, Friar anticipates that OpenAI’s applications will extend beyond current offerings, impacting areas such as scientific research, drug discovery, energy systems, and financial modeling. She highlighted the potential for new economic models to emerge, including licensing, intellectual property agreements, and outcome-based pricing structures.
Expansion of Subscription Services
On January 16, 2025, OpenAI announced the launch of its $8 monthly ChatGPT Go subscription tier in the United States, following its introduction in 171 countries since August 2024. This tier complements existing subscription plans, including the $20 Pro and $200 Plus options.
The company is also set to initiate testing of advertisements in the U.S. for its Free and Go tiers within weeks. Notably, advertisements will not be included in the Plus, Pro, Business, and Enterprise subscription plans, ensuring a streamlined experience for premium users.
Moreover, OpenAI is partnering with chipmaker Cerebras to integrate 750 megawatts of ultra-low latency compute over several stages, starting this year and continuing through 2028. This collaboration aims to enhance the response time of OpenAI’s AI models, further solidifying its position in the competitive AI landscape.
OpenAI’s rapid growth and strategic innovations reflect its commitment to advancing AI technology while catering to an expanding customer base. As the company continues to evolve, it remains focused on creating accessible and impactful AI solutions for diverse industries.
