With OpenAI reportedly targeting $1 billion in revenue by 2024, a closer look at who’s backing the biggest names in AI

OpenAIthe organization behind the lively artificial intelligence bots ChatGPT and DALL-Epredicts it may reach $1 billion in revenue by 2024, Reuters reports.

Citing sources briefed on OpenAI’s recent pitch to investors, Reuters said the San Francisco-based organization expects $200 million in revenue in 2023 and $1 billion by 2024. OpenAI makes money by charging developers fees for licensing its text and image generation technology.

OpenAI was co-founded in 2015 by Elon Musk, Sam Altman and other. It first caught mainstream attention for DALL-E, an AI capable of creating detailed, realistic images (whether to call them “art”). is the subject of debate) in any style on almost any topic, based on written requests from users.

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Last month, OpenAI introduced ChatGPT to the public. The chatbot, which can perform search queries and write entire essays based on prompts, immediately garnered attention from the tech and media worlds — not least from writers who feared it was so good it could soon replace us.

A lot of money goes to AI

Artificial intelligence overall is one of the most funded startup industries. Funding for AI startups in recent years has accounted for up to 10% of all venture capital dollars invested globally. Show Crunchbase data. Last year nearly $70 billion in venture capital flowed into AI startups worldwide.

Alongside OpenAI, data and AI companies are among the highest rated startups in the industry data bricks (worth $38 billion), driverless car company cruise ($30 billion) and AI writing assistants grammar ($13 billion).

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OpenAI alone has raised more than $1 billion in venture capital, according to Crunchbase data Microsoft as the largest investor. Khosla Ventures, Sequoia Capital, tiger global, Y combiner and bedrock capital also provided capital.

The organization was recently valued at $20 billion in a secondary sale of its shares, Reuters reported. His supporters see the potential in his technology to generate huge revenues by automating even creative tasks like writing and design.

Still, several prominent VC firms declined to invest earlier this year, “asking whether it might justify a higher valuation or compete with peers.” alphabet Inc.-owned Google,” Reuters reported, citing sources familiar with OpenAI’s fundraising efforts.

Microsoft also provides OpenAI computing power. The software giant has reportedly considered increasing its stake in OpenAI as it believes its artificial intelligence technology could generate business for Microsoft’s cloud business as more companies adopt AI and automation.

“We will see progress in 2023 that people would have expected in 2033 two years ago,” says Microsoft President BradSmith said Reuters in an interview. “It will be of the utmost importance not only for the future of Microsoft, but for the future of everyone.”

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Figure: Dom Guzman

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