OpenAI loses $38.5 billion in 2025 as revenue hits $13 billion

Ed Zitron, a prominent AI critic, obtained OpenAI's financial documents revealing the company lost $38.5 billion in 2025, a massive jump from $5.09 billion in 2024. The Financial Times verified the figures but offered a less alarming interpretation, noting that under US accounting rules, much of the loss stems from convertible interest rights granted during OpenAI's conversion from non-profit to for-profit. Stripping out one-time costs, FT estimates actual losses closer to $8 billion. Revenue grew from $3.7 billion in 2024 to $13.07 billion in 2025, though OpenAI previously claimed $20 billion in annualized revenue—a discrepancy likely due to different accounting methods.

OpenAI's operating expenses are staggering: the company paid Microsoft $17.2 billion in 2025, with $10.5 billion allocated to research and development—likely for training new models. Despite revenue tripling, the burn rate raises serious questions about sustainability, especially given OpenAI's pledge to spend up to $1 trillion on data center buildouts. The company is set to go public later this year, which will provide a clearer financial picture. However, in a market where theoretical future profits (like SpaceX's Mars ambitions) drive valuations, actual losses may not deter investors.