OpenAI, backed by Microsoft (MSFT, Financial) and SoftBank, anticipates a near 1000% revenue increase by 2029. The company's annual revenue is expected to soar from $13 billion in 2025 to $125 billion in 2029, fueled by AI agents and new products. Gross margins are also projected to rise significantly, reaching approximately 70% by the end of the decade.
The revenue surge is driven by several factors. Subscription income from OpenAI's flagship product, ChatGPT, is predicted to rise from $8 billion in 2025 to $50 billion in 2029. Revenue from API access is expected to grow from $2 billion this year to $22 billion by 2029. Additionally, income from AI agent usage is projected to reach $29 billion by 2029. These AI agents are priced between $2,000 to $20,000 monthly, depending on functionality.
Other potential revenue streams include advertising and shopping services related to ChatGPT. Recently, ChatGPT's subscription revenue has seen a significant increase, with over 20 million subscribers generating at least $415 million monthly by March. The chatbot also boasts 600 million monthly active users.
OpenAI's recent $40 billion funding round has raised its valuation to $300 billion, as the company continues to roll out new features and models, attracting a million new users within an hour with its built-in image generator.
