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12 historical events · Editorial analysis

OpenAI Company Profile: Business Model, History & Strategy

Research depth: 12 milestones · 10 FAQs

OpenAI is a private AI company led by CEO Sam Altman. Its annualized revenue was over $20 billion at the end of 2025 and nearing $70 billion in September 2026 (Axios). It was valued at $852 billion in March 2026 and is controlled by the nonprofit OpenAI Foundation, with Microsoft holding about 27% after the October…

How OpenAI makes money: OpenAI earns revenue in three main ways. First, ChatGPT subscriptions: consumer tiers such as Plus and Pro, plus Business, Enterprise and Edu seats sold to organizations.

Annualized run-rate (2025)$20B
Employees4,500
CEOSam Altman
Founded2015
IndustryArtificial Intelligence
By Swet ParvadiyaLast reviewed:

OpenAI key figures

OpenAI's latest revenue figure is $20B (2025). This is an annualized run-rate from OpenAI, not audited fiscal-year revenue.

Source: OpenAI · Last reviewed September 2026

Current chief executive
Sam Altman
In the role since 2019 (7 years)
Documented transactions
4
Between 2023 and 2025
Founded
2015
11 years ago
Where was OpenAI founded?
OpenAI was founded in San Francisco, California, United States in 2015. wikidata.org
When did OpenAI start?
OpenAI was founded in 2015.
How old is OpenAI?
OpenAI is 11 years old as of 2026.
In-Depth Analysis
510 words · 3 min read

OpenAI was founded in late 2015 as an idealistic, 501(c)(3) non-profit research laboratory in San Francisco. The founding team included well-known Silicon Valley figures like Sam Altman, Elon Musk, and Ilya Sutskever. The foundational, existential premise of the organization was driven by extreme fear: they believed Artificial General Intelligence (AGI), an AI smarter than humans, was inevitable, and if it was built secretly by a significant, aggressive corporation (like Google), it could destroy humanity. OpenAI was explicitly designed to develop AI safely and distribute its strong benefits equally to all of humanity, free from the strong pressure of generating corporate profits.

The "Capped-Profit" Pivot and Microsoft

The idealistic non-profit model violently collided with definitive physical reality in 2019. Training advanced large language models (LLMs) requires very high, amounts of computing power (specifically thousands of expensive Nvidia GPUs). The non-profit simply could not raise enough charitable donations to compete with Google. Under Sam Altman, OpenAI executed a controversial, extensive strategic pivot: they created a "capped-profit" subsidiary. This allowed them to accept a very large, multi-billion-dollar investment from Microsoft, essentially renting Microsoft's Azure supercomputers in exchange for granting Microsoft exclusive commercial rights to OpenAI's technology.

The ChatGPT Explosion (The iPhone Moment of AI)

In November 2022, OpenAI quietly launched an experimental research preview called ChatGPT. The result was arguably the most rapid, large product launch in the history of the technology industry. It reached 100 million global users in just two months, shattering all historical records. ChatGPT transformed AI from a theoretical academic concept into a visceral, disruptive tool capable of writing complex code, passing the bar exam, and instantly generating high-quality essays. This major "iPhone moment" instantly ignited a multi-trillion-dollar global arms race, forcing major tech leaders (Google, Meta) into a state of, aggressive panic.

The Sam Altman Firing (The Weekend of Chaos)

The, inherent contradiction between OpenAI's non-profit board (which prioritized safety) and its aggressive, corporate subsidiary (which prioritized speed and profit) violently exploded in November 2023. In a shocking, corporate coup, the non-profit board abruptly fired CEO Sam Altman, citing a lack of candor. The result was primary chaos. Microsoft threatened to pull its large funding, and essentially the entire 700-person staff of OpenAI threatened to instantly resign and follow Altman to Microsoft. Within five dramatic days, the board collapsed Altman was triumphantly reinstated with power, and the company was firmly cemented as an aggressive commercial leviathan.

The Pursuit of AGI and The Sora Threat

Today OpenAI is essentially the core leading company of the global AI boom, valued at a very high $80 billion. Their extensive API powers thousands of global startups and integrates into Microsoft enterprise products (Copilot). OpenAI recently unveiled Sora, an advanced AI capable of generating realistic, significant high-definition video from text prompts, threatening to disrupt the considerable global film and advertising industries. The substantial, existential question surrounding OpenAI is no longer whether they can build advanced AI; the question is whether Sam Altman can manage the dangerous, unpredictable path to true AGI before global governments step in to regulate the technology.

OpenAI Key Facts

CompanyOpenAI
Financials$20B (annualized run-rate, 2025)
Valuation$852.0B (private company, last reported)
Last reviewedBy Swet Parvadiya, Founder & Editor - September 2026
Founded2015
Founder(s)Sam Altman, Elon Musk, Greg Brockman, Ilya Sutskever, Wojciech Zaremba, John Schulman
CEOSam Altman
HeadquartersSan Francisco, California, United States
IndustryArtificial intelligence research and deployment
Employees4,500+

OpenAI Company Profile: Business Model, History & Strategy

"OpenAI matters because it turned frontier AI from a research category into a daily consumer, developer, and enterprise product surface. The latest refresh updates revenue to $20B+ ARR, CEO to Sam Altman, employee count to 4,500, and source links to current primary disclosures."

OpenAI is a private AI company led by CEO Sam Altman. Its annualized revenue was over $20 billion at the end of 2025 and nearing $70 billion in September 2026 (Axios). It was valued at $852 billion in March 2026 and is controlled by the nonprofit OpenAI Foundation, with Microsoft holding about 27% after the October 2025 recapitalization.

Founded

2015

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Research Profile

Our analysts compile business strategy profiles from public financial filings, press releases, and analyst reports. Each profile is reviewed for accuracy before publication by our editorial desk and updated on a rolling basis.

Sources & References

All data point citations [1], [2], etc. in the tables above refer to these primary sources.

Financial data on this page is sourced from SEC EDGAR filings, official earnings releases, and verified press statements. Revenue figures are reviewed and updated periodically. Read our full data methodology ->

Editorial Methodology

Company Research

We use company filings, annual reports, company statements and press reports, with primary sources preferred where available. Each financial row shows its recorded source. Full-year figures are separated from annualized run-rates, partial periods and forecasts; unaudited figures carry a label. Source detail varies by company, so check the linked material when the reporting basis matters.

1. Primary Sources

Public companies may provide filings and annual reports. Private-company figures may come from statements or press coverage. A missing figure stays missing, and a source link should identify where its number came from.

2. Expert Curation

We organize company records and review claims for strategic context, source quality and clarity. Pages show a review date where one is recorded.

3. Multi-Pass Audit

Technical checks flag inconsistent figures and missing links. Editorial review of the underlying source remains necessary for claims those checks cannot verify.

Swet Parvadiya
SEC filings & public records methodology
Sourced from public financial records

Frequently Asked Questions About OpenAI

How does OpenAI make money?

OpenAI makes money from ChatGPT subscriptions (consumer Plus and Pro plans plus Business, Enterprise and Edu seats), usage-based fees for its API, and enterprise and partner contracts such as Codex deployments and revenue sharing with Microsoft Azure. Its run-rate revenue was nearing $70 billion in September 2026, according to Axios.

Who owns OpenAI?

OpenAI Group PBC is controlled by the nonprofit OpenAI Foundation. At the October 2025 recapitalization, the Foundation held about 26%, Microsoft about 27% (valued near $135 billion), and employees and other investors the rest. Later investors including SoftBank, Amazon and Nvidia joined through the 2026 funding round.

Who is the CEO of OpenAI?

Sam Altman is OpenAI's co-founder and CEO. He has led the company since 2019 and returned within days after the board briefly removed him in November 2023. Greg Brockman is president.

Who are OpenAI's competitors?

OpenAI's main competitors are Anthropic (Claude), Google (Gemini and DeepMind), Meta (Llama), xAI (Grok) and, in some products, Microsoft, which is also its largest shareholder. Open-weight model providers compete on API price.

What is OpenAI's valuation?

OpenAI was valued at $852 billion post-money when it closed a $122 billion round on March 31, 2026, and an employee tender of about $7 billion in August 2026 used the same price. Bloomberg reported on September 29, 2026 that it was in talks to raise at least $30 billion at about $1.4 trillion.

Is OpenAI publicly traded?

No. OpenAI has no stock ticker. Sam Altman said in September 2026 that an IPO would not happen in 2026.

How many people use ChatGPT?

OpenAI said ChatGPT had more than 900 million weekly active users and over 50 million consumer subscribers in February 2026.

When was OpenAI founded and by whom?

OpenAI was founded in December 2015 by Sam Altman, Elon Musk, Greg Brockman, Ilya Sutskever, Wojciech Zaremba, John Schulman and others as a nonprofit research lab.

Does Microsoft own OpenAI?

No, Microsoft does not outright own OpenAI, but it has invested over $13 billion into the company, securing a massive 49% stake in OpenAI's for-profit subsidiary.

Who founded OpenAI?

OpenAI was founded in 2015 by Sam Altman, Ilya Sutskever, Greg Brockman, Wojciech Zaremba, John Schulman, and Elon Musk (who later left the company).

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Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.