OpenAI expects its revenue to triple by 2025, but Chinese AI companies are thriving.

CN
5 days ago

Source: Cointelegraph Original: "{title}"

OpenAI expects its revenue to more than triple this year, reaching $12.7 billion, despite facing rapid growth from competitors like China's DeepSeek.

According to a Bloomberg report on March 26, OpenAI also anticipates that its revenue target for 2025 will double before 2026, reaching $29.4 billion. This estimate is slightly higher than the $11.6 billion target set by OpenAI last September.

Bloomberg noted that the primary source of revenue for ChatGPT comes from paid AI software subscription services aimed at consumers and businesses.

Reportedly, OpenAI reached 1 million paid users for its ChatGPT version tailored for businesses last September, and the company recently launched a $200 per month ChatGPT Pro option.

The company, led by Sam Altman, is expected to achieve positive cash flow only by 2029, at which point its revenue is projected to exceed $125 billion, insiders told Bloomberg.

OpenAI is also nearing the completion of a $40 billion funding round led by SoftBank Group, with a valuation potentially reaching $300 billion. The company is also seeking to transition its nonprofit business model into a for-profit enterprise.

Intensifying Competition Between US and Chinese AI Companies

Despite the stir caused by DeepSeek's ChatGPT competitor "R-1" model launched at the end of January, it has also triggered a wave of other Chinese tech companies releasing multiple high-quality, low-cost AI solutions, Bloomberg reported on March 26.

Baidu launched its "Wenxin Yiyan" model to compete with DeepSeek's R-1 model, while Alibaba Group introduced its new open-source AI model on March 26, aimed at providing solutions for low-cost AI agents.

Source: David Sacks

Tencent Holdings has also launched its own AI chatbot under its subsidiary Ant Group, while DeepSeek released its latest model—DeepSeek-V3-0324—on March 24.

While it remains to be seen how these Chinese models compare to OpenAI's products in practice, these updated, often lower-priced options are putting greater pressure on the business models of leading US companies. Tech investor and former Andreessen Horowitz ("a16z") general partner Balaji Srinivasan stated in a tweet on March 22: "China is trying to do what they always do with AI: research, imitate, optimize, and then bankrupt everyone with low prices and massive scale."

Li Kaifu, CEO of Chinese startup 01.AI, said in a Reuters interview on March 25 that DeepSeek's efforts have brought Chinese AI companies just three months behind their US counterparts, whereas previously Chinese companies lagged by about six to nine months.

Source: The Short Bear

Meanwhile, OpenAI CEO Sam Altman stated on February 12 that his company plans to release GPT-4.5 and GPT-5 in the coming weeks or months.

Plus and Pro subscribers will be able to run the higher intelligence level GPT-5, which will include features like voice, canvas, search, and deep research, he mentioned in an update to OpenAI's technology roadmap.

In the US market, OpenAI's competitors include Anthropic, DeepMind, xAI, and Google's Gemini.

Related: Bitcoin mining stocks drop after Microsoft abandons data center plans.

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