The annualised revenue of OpenAI climbed past $20 billion in 2025, according to a blog by Chief Financial Officer (CFO) Sarah Friar about how the company’s business model scales with intelligence. For context, annualised revenue is an estimate of a company’s earnings based on revenue from a shorter period. In the post, she framed the milestone as part of a broader transition from early experimentation to deeply embedded adoption of ChatGPT across workflows.
Friar reported the year-by-year progression from $2 billion in Annual Recurring Revenue (ARR) in 2023, $6 billion in 2024, and over $20 billion in 2025, with available compute growing in proportion, roughly tripling each year from 0.2 Gigawatt (GW) in 2023 to 1.9 GW in 2025. These numbers reflect the electrical power consumption required to run the compute infrastructure behind OpenAI.
This parallel with compute, she said, reflects how investment in computational capacity enables frontier research, stronger models, broader adoption, and ultimately higher revenue. However, as of November 2025, it is estimated that OpenAI will pay $1.4 trillion across various contracts with Amazon, Microsoft, Oracle, and others for Compute infrastructure.
Furthermore, she writes that OpenAI applied a principle where “our business model should scale with the value intelligence delivers”, building monetisation paths from subscriptions and usage-based APIs to a commerce-supported free tier and advertising as adoption deepened. Friar said this approach reflects how intelligence is moving from a specialised tool to a mass-market utility used across everyday digital services.
Looking ahead to 2026, Friar said the company’s priority is “practical adoption”, with a focus on “closing the gap” between what AI now enables and how individuals, companies, and countries actually use it day to day. She pointed to health, science, and enterprise as key areas where intelligence can translate into measurable productivity and economic outcomes.
OpenAI Aiming For 2027 IPO
OpenAI is preparing for a potential initial public offering (IPO) that could value the company at up to $1 trillion, setting the stage for what would be one of the largest listings in corporate history according to a Reuters report. The company is considering filing with securities regulators in the second half of 2026, with an eventual public debut targeted in 2027.
Preliminary discussions have explored raising around $60 billion or more in the offering. OpenAI’s private valuation sits near $500 billion following recent secondary share sales, and the proposed $1 trillion IPO valuation would more than double that figure.
CFO Sarah Friar has indicated the company is aiming for a 2027 listing, although internal planning could see a late 2026 debut if market conditions allow. However, an OpenAI spokesperson stressed that an IPO is not the company’s current focus, emphasising that the business is building a…
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