one year on
OpenAI weighs for-profit restructuring as reported financials show $5B loss on $3.7B revenue
The ChatGPT maker is considering restructuring the company into a for-profit business, as new documents reveal the firm is burning through billions running its AI models.
OpenAI expects roughly $5 billion in losses on $3.7 billion in revenue this year, according to company documents reviewed by The New York Times and confirmed by CNBC. The figures—tied largely to the cost of running AI models on Nvidia GPUs, employee salaries, and office rent—come as the company pursues a funding round that would value it at more than $150 billion.
Alongside reports that the board is weighing a restructuring into a for-profit business, a person familiar with the matter told CNBC the new structure would simplify investor arrangements and let employees cash out.
Revenue hit $300 million last month, up 1,700% since the beginning of last year, and is projected to reach $11.6 billion next year. But costs continue to outpace income; the reported losses exclude equity-based compensation. The funding round, led by Thrive Capital with Tiger Global joining, is oversubscribed and expected to close by next week, according to CFO Sarah Friar’s Thursday email to investors.
The record
Reported that OpenAI CFO Sarah Friar told investors in an email that the funding round is oversubscribed and will close next week.
One year later — open only if you can handle spoilers
The restructuring was completed in 2025, with Altman reportedly receiving equity valued at roughly $10 billion at the time. The nonprofit arm retained a minority stake and a governance role, but critics argued the original mission had been effectively abandoned. OpenAI's valuation continued to climb, reaching over $300 billion by early 2026.