$100 billion for OpenAI by 2027? Sam Altman confirms the one reason he’d actually back an IPO — revenge

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OpenAI is widely considered a leading AI research lab. Some, like Microsoft CEO Satya Nadella, believe a key to their success with ChatGPT was having two years to develop it without competition. Interestingly, it’s now known that Bill Gates initially opposed Microsoft’s $1 billion investment in OpenAI back in 2019, warning Satya Nadella, “You’re going to burn this billion dollars.”

Recently, OpenAI CEO Sam Altman credited Microsoft and its CEO Satya Nadella with a key role in the company’s achievements, noting their early support. Despite this success, investors are closely watching OpenAI’s finances, concerned that the current excitement around AI might be a temporary bubble.

Recently, OpenAI and Microsoft strengthened their partnership with a new agreement. This allows OpenAI, the creator of ChatGPT, to become a for-profit company while protecting it from being acquired by others or facing unwanted outside control.

By becoming a for-profit company through an IPO, the AI firm can operate more freely from its previous non-profit structure, which limited how much profit investors could earn. This new approach should make it easier to attract further investment. Recent financial reports indicate the company may have lost $11.5 billion while pursuing advancements in AI, according to Microsoft’s fiscal year data ending June 30.

Investors are worried about the company’s significant spending on AI, as it’s proving difficult to see how these investments will lead to profits in the rapidly changing market.

OpenAI CEO Sam Altman is becoming frustrated with inaccurate reports about the company’s finances. During a recent podcast appearance with Microsoft CEO Satya Nadella, Altman addressed worries about OpenAI’s significant spending on AI projects, suggesting those concerns are overblown and fueled by hype.

As a huge fan of ChatGPT, I was blown away to hear OpenAI is making around $13 billion a year from it and access to their other language models! But it’s crazy to think that still isn’t enough to cover their costs – they’re apparently spending a massive $1.4 billion just on computing power. And according to Sam Altman…

Actually, our revenue is much higher than that figure. Also, Brad, if you’re interested in selling your shares, I can definitely find someone to buy them. There’s a lot of interest in owning OpenAI stock, so I’m confident we could find a buyer quickly.

The executive stated that OpenAI’s revenue is increasing rapidly. They also anticipate a significant rise in demand for their products and services, like ChatGPT, as well as any future hardware they develop, from both individual consumers and businesses.

According to Sam Altman:

We’re confident that growth will continue, not just for ChatGPT, but for our overall AI capabilities, making us a leading AI platform. We also believe our consumer devices will be a major success, and that AI-powered scientific automation will unlock substantial benefits.

Satya Nadella, the CEO of Microsoft, has expressed strong confidence in OpenAI, stating that the company has surpassed all of its initial business projections and consistently exceeded expectations.

Altman dismissed claims that OpenAI was going to turn into a public company next year:

We don’t currently have any plans for that, but I anticipate it might happen in the future. Honestly, I’m not sure why these kinds of reports are even created – we haven’t made any official decisions or set a timeline. It just seems like a logical next step eventually.

Altman admitted he gets a small amount of satisfaction from seeing people predict OpenAI’s failure. He jokingly suggested they should bet against the company – and lose money doing so – adding that he’d enjoy seeing that happen, revealing a touch of resentment.

During the interview, the host suggested the company might earn $100 billion by 2028 or 2029. Altman quickly responded, asking, “What about 2027?”

FAQ

What is an IPO?

An IPO, or Initial Public Offering, happens when a private company offers shares to the general public for the first time, effectively becoming a publicly traded company.

How much revenue does OpenAI generate annually?

ChatGPT and access to OpenAI’s language models are currently bringing in as much as $13 billion annually. CEO Sam Altman anticipates this number could increase dramatically, potentially reaching $100 billion by 2027.

How much stake does Microsoft hold in OpenAI under its new business structure?

As a big fan of both Microsoft and OpenAI, I’ve been following their partnership closely. It’s amazing how much Microsoft has invested – up to $13 billion since 2019! They’ve now finalized a new deal that’s really changed things. Basically, Microsoft has restructured its investment, and now owns a piece of OpenAI valued at around $135 billion. That works out to roughly 27% of the company, which is a huge vote of confidence in what OpenAI is building.

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2025-11-05 16:22