{"id":707070,"date":"2026-06-16T08:15:06","date_gmt":"2026-06-16T08:15:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/707070\/"},"modified":"2026-06-16T08:15:06","modified_gmt":"2026-06-16T08:15:06","slug":"exclusive-openai-losses-increased-nearly-8x-in-2025-with-spending-hitting-34-billion","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/707070\/","title":{"rendered":"Exclusive: OpenAI Losses Increased Nearly 8X in 2025, With Spending Hitting $34 Billion"},"content":{"rendered":"

Soundtrack: In Flames – Colony<\/a><\/p>\n

To further support my independent journalism, please subscribe to my premium newsletter. It\u2019s $7 a month or $70 a year. If you\u2019re subscribed to the free newsletter and logged in, you should see at the bottom right hand corner of your screen a little circle you can click, and you\u2019ll be able to sign up for premium.\u00a0<\/p>\n

Today, I can exclusively report, based on audited financial documents viewed by this publication that have been independently verified by the Financial Times<\/a>, that OpenAI lost around $38.5 billion in 2025, as well as other crucial details about the financial condition of the company.\u00a0<\/p>\n

Due to the seriousness of this story, I am not going to do very much editorializing, as the numbers speak for themselves.<\/p>\n

2024 \u2014 OpenAI Had $3.7 Billion In Revenue, $12.4 Billion In Costs and Expenses, and a net loss attributable to the company of $5.09 Billion.<\/p>\n

OpenAI\u2019s financial statements tell the story of a company with incredible losses.<\/p>\n

Revenue: $3.7 billionCost of Revenue: $2.65 billionResearch and Development: $7.81 billionSales and Marketing: $1.11 billionGeneral and Administrative: $907 MillionTotal Costs and Expenses: $12.48 billionLoss from Operations: $8.78 billion<\/p>\n

Additional factors \u2013 including interest income and interest expense \u2013 left it with a net loss of $8.84 billion. It then marked $3.74 billion of losses as \u201cnet loss attributable to noncontrolling members capital,\u201d leaving the net loss attributable to the company as $5.09 billion.\u00a0<\/p>\n

It\u2019s unclear what this means, nor how OpenAI reconciled the removal of $3.74 billion in costs. I will not speculate further.<\/p>\n

2025 \u2014 OpenAI Had $13.07 Billion In Revenue, $34 Billion In Costs and Expenses, and $20.92 Billion In Losses, with a net loss attributable to the company of $38.53 BillionRevenue: $13.07 billionCost of Revenue: $7.5 billionResearch and Development: $19.18 billionSales and Marketing: $5.73 billionGeneral and Administrative: $1.57 BillionTotal Costs and Expenses: $34 billionLoss from Operations: $20.92 billion<\/p>\n

Please note that 2025 was the year that OpenAI converted from a non-profit to a for-profit entity, leading to a $41.55 billion loss due to changes in fair value of convertible interests and warrant liability.\u00a0<\/p>\n

Taking into account other minor factors like interest income and interest expense, OpenAI is left with a net loss of $60.35 billion, which it lowered to $38.53 billion by removing $17.87 billion in costs via that \u201cnet loss attributable to noncontrolling members capital\u201d and another $3.95 billion via a \u201cnet loss attributable to redeemable noncontrolling interests.\u201d\u00a0<\/p>\n

Ultimately, the net loss attributable to OpenAI in 2025 was $38.5 billion.\u00a0<\/p>\n

At the end of the year, OpenAI had just over $50 billion in assets, with almost half of that in cash.<\/p>\n

In 2025, SoftBank paid OpenAI $867 million. Microsoft paid it $303 million.\u00a0<\/p>\n

The documents revealed how much OpenAI paid Microsoft for services. In the 2025 calendar year, OpenAI paid Microsoft $10.59 billion for \u201cResearch and development\u201d expenses. We believe this most likely refers to the cost of training OpenAI\u2019s models.\u00a0<\/p>\n

The documents also mention a $6.047 billion charge related to \u201ccost of revenue,\u201d a $527 million charge for sales and marketing, and $42 million in \u201cgeneral and administrative expenses.\u201d In total, OpenAI\u2019s expenses to Microsoft amounted to $17.2 billion.\u00a0<\/p>\n

According to the figures, OpenAI had liabilities to Microsoft of $3.64 billion at the close of the calendar year, and additional $21 million in \u201caccrued expenses and other current liabilities.\u201d The documents also mention a further $58 million in non-current liabilities.<\/p>\n

I intend to follow up this story in the next month with more in-depth reporting related to the documents. The documents are detailed, and I need time to fully parse them. Once I have done so, you\u2019ll know.<\/p>\n

The financial condition of OpenAI is deeply concerning. $38.53 billion in losses are astronomical, and far higher than most believed it would be. Losses also appear to be mounting year-over-year at a dramatic rate, and I\u2019m not sure how this company finds a way toward any kind of sustainability or profitability. <\/p>\n

As discussed, I have not editorialized much today. I believe the best thing I can do for the general public is to deliver this news as plainly as possible.\u00a0<\/p>\n

As I mentioned at the beginning, if you liked this piece, you should subscribe to my premium newsletter. It\u2019s $70 a year, or $7 a month, and in return you get a weekly newsletter that\u2019s usually anywhere from 5,000 to 18,000 words, including vast, detailed analyses of NVIDIA<\/a>, Anthropic and OpenAI\u2019s finances<\/a>, and the AI bubble writ large<\/a>. My Hater’s Guides To the SaaSpocalypse<\/a>, Private Credit<\/a> and Private Equity<\/a> are essential to understanding our current financial system, and my guide to how OpenAI Kills Oracle<\/a> pairs nicely with my Hater’s Guide To Oracle<\/a>.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Soundtrack: In Flames – Colony To further support my independent journalism, please subscribe to my premium newsletter. It\u2019s…\n","protected":false},"author":2,"featured_media":631443,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28],"class_list":["post-707070","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/707070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=707070"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/707070\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/631443"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=707070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=707070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=707070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}