OpenAI Losses Rose to $38.53 Billion in 2025 Ahead of IPO Plans

Insider reported that OpenAI recorded losses of $38.53 billion in 2025, compared with $5 billion in 2024. The figures appeared in a report based on audited financial information viewed by researcher and journalist Ed Zitron and published June 15. The company is preparing for an IPO.

It recently announced it is considering price reductions to compete for customers. OpenAI generated $13 billion in revenue, with costs running at roughly 260 percent of revenue, according to Shivaram Rajgopal, a professor of accounting at Columbia Business School. Roughly 9 percent of revenue came from SoftBank, which accounted for $867 million, and Microsoft, which accounted for $303 million.

The company spent more than $19 billion on research and development. It paid Microsoft more than $10 billion for R&D-related expenses, bringing total expenses to Microsoft to around $17 billion, said Shay Boloor, chief market strategist at Futurum Equities. George Noble described OpenAI as a cautionary tale in the wider AI trade.

Equity analyst Ross Hendricks of Porter & Company called the situation a dumpster fire, writing that the business sells a dollar worth of compute for 30 cents while still considering price cuts to avoid losing market share. OpenAI did not respond to a request for comment.