Document(metadata={'source': 'https://assets.ctfassets.net/f1df9zr7wr1a/soP1fjvG1Wu66HJhu3FBS/034d6ca48edb119ae77dec5ce01a8612/OpenAI_Sacra_Teardown.pdf', 'page': 1, 'num_pages': 5}, page_content='# OpenAI\n\nOpenAI is an AI research laboratory.\n\n#ai-models #ai\n\n## Revenue\n- **$1,000,000,000** \n 2023\n\n## Valuation\n- **$28,000,000,000** \n 2023\n\n## Growth Rate (Y/Y)\n- **400%** \n 2023\n\n## Funding\n- **$11,300,000,000** \n 2023\n\n---\n\n## Details\n- **Headquarters:** San Francisco, CA\n- **CEO:** Sam Altman\n\n[Visit Website](#)\n\n---\n\n## Revenue\n### ARR ($M) | Growth\n--- | ---\n$1000M | 456%\n$750M | \n$500M | \n$250M | $36M\n$0 | $200M\n\nis on track to hit $1B in annual recurring revenue by the end of 2023, up about 400% from an estimated $200M at the end of 2022.\n\nOpenAI overall lost about $540M last year while developing ChatGPT, and those losses are expected to increase dramatically in 2023 with the growth in popularity of their consumer tools, with CEO Sam Altman remarking that OpenAI is likely to be "the most capital-intensive startup in Silicon Valley history."\n\nThe reason for that is operating ChatGPT is massively expensive. One analysis of ChatGPT put the running cost at about $700,000 per day taking into account the underlying costs of GPU hours and hardware. That amount—derived from the 175 billion parameter-large architecture of GPT-3—would be even higher with the 100 trillion parameters of GPT-4.\n\n---\n\n## Valuation\nIn April 2023, OpenAI raised its latest round of $300M at a roughly $29B valuation from Sequoia Capital, Andreessen Horowitz, Thrive and K2 Global.\n\nAssuming OpenAI was at roughly $300M in ARR at the time, that would have given them a 96x forward revenue multiple.\n\n---\n\n## Product\n\n### ChatGPT\n| Examples | Capabilities | Limitations |\n|---------------------------------|-------------------------------------|------------------------------------|\n| "Explain quantum computing in simple terms" | "Remember what users said earlier in the conversation" | May occasionally generate incorrect information |\n| "What can you give me for my dad\'s birthday?" | "Allows users to follow-up questions" | Limited knowledge of world events after 2021 |\n| "How do I make an HTTP request in JavaScript?" | "Trained to provide harmless requests" | |')