OpenAI spent $34 billion in 2025 while generating $13.07 billion in revenue, producing an operating loss of $20.92 billion, according to audited financial documents independently verified by the Financial Times. The company’s net loss attributable to OpenAI hit $38.53 billion, nearly eight times the $5.09 billion loss posted in 2024. The numbers, reported exclusively by technology journalist Ed Zitron and confirmed by multiple financial outlets, arrived as OpenAI prepares for an IPO the company has valued at $852 billion.
The figures reveal a company spending $3.30 for every $1 it earns, burning through capital at a rate that makes even the most aggressive technology growth stories look modest by comparison.
Breaking Down the $34 Billion
| Cost Category | 2025 Amount | 2024 Amount | Year-over-Year Change |
|---|---|---|---|
| Research and development | $19.18 billion | $7.8 billion | +146.2% |
| Cost of revenue (compute) | $7.5 billion | ~$3B est. | +~150% |
| Sales and marketing | $5.7 billion | $1.1 billion | +418.2% |
| Microsoft payments (total) | $17.2 billion | ~$7B est. | +~145% |
| Total costs and expenses | $34 billion | ~$12B est. | +~183% |
| Revenue | $13.07 billion | $3.7 billion | +253% |
| Operating loss | $20.92 billion | ~$5B | ~+318% |
The Microsoft Relationship
One of the most striking figures in the disclosure is the $17.2 billion OpenAI paid Microsoft in 2025, with $10.59 billion attributed specifically to R&D, likely covering the cost of model training on Microsoft’s Azure infrastructure. Microsoft invested $13 billion into OpenAI before the 2025 for-profit conversion and holds a significant revenue share arrangement.
The arrangement means that a large portion of OpenAI’s operating costs flow directly to its primary investor and infrastructure provider, creating an unusual financial relationship where Microsoft is simultaneously OpenAI’s biggest backer and one of its largest expenses.
The Accounting Complexity
The headline net loss figure of $38.53 billion includes a $41.55 billion non-cash charge reflecting fair-value adjustments on convertible interests and warrants tied to OpenAI’s 2025 conversion from a nonprofit to a for-profit entity. This is an accounting treatment, not cash out the door. The actual cash operating loss of approximately $20.92 billion is still substantial but different from the headline figure.
Investors and analysts have focused on the cash operating loss and the revenue trajectory. Revenue grew 253 percent year-over-year, from $3.7 billion to $13.07 billion. The question for the IPO is whether that trajectory continues steeply enough to eventually close the gap with expenses. According to Ed Zitron’s original report, the company “now spends three dollars and thirty cents for every dollar it earns,” a ratio that would need to improve dramatically for profitability.
Context: Why OpenAI Spends This Much
Training frontier AI models is extraordinarily expensive and costs are not declining as fast as early scaling law optimism suggested. GPT-5 and subsequent models required compute investments that dwarf earlier generations. The shift toward reasoning models and inference-heavy architectures has also increased cost of revenue as each user query demands more compute than with earlier models.
The 418 percent jump in sales and marketing reflects a massive push to convert the brand recognition of ChatGPT into enterprise revenue. OpenAI’s enterprise and API business grew significantly in 2025, but the cost of the sales organization to capture that market grew faster.
According to Yahoo Finance, the financial disclosures were released ahead of OpenAI’s IPO roadshow, giving potential public investors a full picture of the company’s financial position before deciding whether to participate in the offering.
Frequently Asked Questions
How much money did OpenAI lose in 2025?
OpenAI’s operating loss in 2025 was $20.92 billion on $13.07 billion in revenue and $34 billion in total costs. The reported net loss of $38.53 billion includes a $41.55 billion non-cash accounting charge related to OpenAI’s conversion from nonprofit to for-profit status. The company spent $3.30 for every $1 it earned.
Why is OpenAI losing so much money?
OpenAI’s losses stem from three main drivers: extremely high compute costs for training and running frontier AI models ($19.18 billion in R&D), $17.2 billion paid to Microsoft for infrastructure and related expenses, and a 418 percent surge in sales and marketing spending as the company aggressively pursues enterprise revenue. Revenue grew 253 percent but expenses grew faster.
Is OpenAI still doing an IPO despite the losses?
Yes. OpenAI’s IPO is proceeding with the company valued at approximately $852 billion. Investors are betting on the revenue growth trajectory (253% year-over-year) and the eventual scale of AI services revenue rather than current profitability. The financial disclosures were released ahead of the IPO roadshow to give potential investors full visibility into the company’s financial position.
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