An OpenAI spokesperson told Reuters that \u201can IPO is not our focus, so we could not possibly have set a date,\u201d adding that the company is \u201cbuilding a durable business and advancing our mission so everyone benefits from AGI.\u201d<\/p>\n
Revenue grows as losses mount<\/p>\n
The IPO preparations follow a restructuring<\/a> of OpenAI completed on October 28 that reduced the company\u2019s reliance on Microsoft<\/a>, which has committed to investments of $13 billion and now owns about 27 percent of the company. OpenAI was most recently valued around $500 billion in private markets.<\/p>\n OpenAI started as a nonprofit in 2015, then added a for-profit arm a few years later with nonprofit oversight. Under the new structure, OpenAI is still controlled by a nonprofit, now called the OpenAI Foundation, but it gives the nonprofit a 26 percent stake in OpenAI Group and a warrant for additional shares if the company hits certain milestones.<\/p>\n A successful OpenAI IPO could represent a substantial gain for investors, including Microsoft, SoftBank, Thrive Capital, and Abu Dhabi\u2019s MGX. But even so, OpenAI faces an uphill financial battle ahead. The ChatGPT maker expects to reach about $20 billion in revenue by year-end, according to people familiar with the company\u2019s finances who spoke with Reuters, but its quarterly losses are significant.<\/p>\n Microsoft\u2019s earnings filing on Wednesday offered a glimpse at the scale of those losses. The company reported that its share of OpenAI losses reduced Microsoft\u2019s net income by $3.1 billion in the quarter that ended September 30. Since Microsoft owns 27 percent of OpenAI under the new structure, that suggests OpenAI lost about $11.5 billion during the quarter, as noted by<\/a> The Register. That quarterly loss figure exceeds half of OpenAI\u2019s expected revenue for the entire year.<\/p>\n","protected":false},"excerpt":{"rendered":"An OpenAI spokesperson told Reuters that \u201can IPO is not our focus, so we could not possibly have…\n","protected":false},"author":2,"featured_media":255257,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[256,254,255,64,63,105],"class_list":{"0":"post-255256","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-au","12":"tag-australia","13":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/255256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=255256"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/255256\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/255257"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=255256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=255256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=255256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}