OpenAI’s revenue hits $20 billion, but the cost of growth looms large
A 233% surge in sales masks the immense expense of powering the AI boom.
OpenAI’s annualized revenue run rate reached $20 billion in 2025, an increase of 233.3% compared with 2024, according to data published by the AI company on Sunday. “This is growth on a scale never seen before,” said CFO Sarah Friar. The 2025 figure represents an acceleration relative to 2024, when revenue rose by 200%, from $2 billion in 2023 to $6 billion.
The impressive growth, however, comes with a significant asterisk: revenue expansion appears to be closely tied to a parallel surge in expenses. While OpenAI has not disclosed detailed figures on costs or profitability, the scale of its spending can be inferred from data on its computing infrastructure.
According to the company, OpenAI operated 1.9 gigawatts of computing power in 2025, equivalent to the electricity consumption of roughly two million households, or about 12% of Israel’s peak electricity output, an increase of 216.7% compared with 2024.
Such a dramatic expansion in computing capacity implies expenses running into the tens of billions of dollars annually, suggesting that even $20 billion in annual revenue may be insufficient to support the company’s current trajectory. In December, The Wall Street Journal reported that OpenAI was seeking to raise $100 billion at a valuation of $830 billion, primarily to finance further expansion of its computing infrastructure. Around the same time, it was reported that SoftBank had completed a $40 billion investment in the company.
Even after publishing its revenue figures, and especially in the absence of transparency regarding costs and losses, the burden of proof regarding the sustainability of OpenAI’s business model still rests squarely with the company.
