ChatGPT's Popularity Comes with a Price
OpenAI, the company behind ChatGPT, is facing significant financial losses despite its immense popularity. The service, which generates around 70% of the company's recurring revenue, is used by 95% of its users for free.
If you build it, they will come and expect the service to be free
According to a report by The Information, OpenAI collected $4.3 billion in revenue during the first half of 2025 but still posted a net loss of $13.5 billion. The company is reportedly valued at around $500 billion and has committed to spending over $1 trillion in partnership deals over the next five years.
- 95% of ChatGPT users do not pay for the service
- OpenAI's revenue: $4.3 billion (first half of 2025)
- Net loss: $13.5 billion (first half of 2025)
Author's summary: ChatGPT's free usage hurts OpenAI's finances.
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