OpenAI targets $12.7B revenue as Chinese AI rivals gain

OpenAI expects to triple its revenue to $12.7 billion in 2025, surpassing earlier estimates, as paid subscriptions like ChatGPT Pro drive growth.

The company’s revenue could reach $29.4 billion by 2026, according to Bloomberg, though profitability isn’t projected until 2029, when earnings may exceed $125 billion.

A new $200/month ChatGPT Pro tier has contributed to the expansion, alongside corporate subscriptions.

OpenAI is also nearing a $40 billion funding round led by SoftBank, valuing the company at $300 billion.

The firm’s shift from nonprofit to for-profit status has drawn attention amid rising competition from China.

Chinese AI companies, including DeepSeek, Baidu, and Alibaba, are launching cost-effective models, challenging U.S. dominance.

DeepSeek’s R-1 model and Baidu’s Ernie X1 have gained traction, while Tencent and Alibaba continue to develop chatbots and open-source tools.

Tech investor Balaji Srinivasan warned that China’s strategy of optimising and scaling AI at low costs could undercut Western firms.

Lee Kai-fu, CEO of 01.AI, noted that Chinese firms now lag U.S. counterparts by only three months, compared to six to nine months previously.

OpenAI CEO Sam Altman has announced upcoming releases of GPT-4.5 and GPT-5, with new voice and deep research features for premium users.

The competition highlights diverging strategies: OpenAI focuses on premium subscriptions and long-term scalability, while Chinese rivals prioritise affordability and rapid iteration.

Analysts continue to assess whether Chinese models can match OpenAI’s capabilities as the AI market evolves.