OpenAI reports $540 million loss in 2020 amid ambitious AI projects

OpenAI, a research and deployment company that aims to ensure that general-purpose artificial intelligence benefits all of humanity, has reported a net loss of $540 million for the year 2020, according to its latest financial statement.

AS the company has to invest heavily in research, development, infrastructure, and talent. According to its financial statement, OpenAI spent $859 million on operating expenses in 2020, while generating only $319 million in revenue. The majority of its revenue came from grants and contributions from its backers, such as Microsoft, which invested $1 billion in OpenAI in 2019 and another $10 billion in 2023.

OpenAI also announced that it has raised another $300 million in a venture round led by Thrive Capital and Andreessen Horowitz in April 2023, bringing its total funding to $11.3 billion. The company said that it will use the new funds to continue its research and development efforts, as well as to support its startup fund, which aims to invest in companies that are building products and services using OpenAI’s technology.