OpenAI invested $34 billion last year as it prepares for a public offering.

      In 2025, OpenAI incurred expenses of $34 billion, which is more than two and a half times its revenue, as the company prepares for what could be one of the largest public offerings ever attempted. This figure, as reported by the Financial Times, highlights the significant costs associated with the race to develop cutting-edge AI technologies for the company leading this effort.

      The expenditure breakdown aligns with what one might expect from a business aiming to surpass its competitors through spending. Approximately $19 billion was allocated for research and development, nearly $6 billion went towards sales and marketing, and the remainder was invested in the infrastructure and staffing necessary for operating models at scale. In contrast, the company generated $13 billion in revenue, exceeding its internal target of $10 billion.

      The disparity between these two figures encapsulates OpenAI’s current situation. Revenue is rising rapidly and surpassing projections, yet the company is still experiencing substantial losses that would likely be unsustainable for most businesses lacking such considerable capital reserves. Achieving a revenue target of $10 billion is something a typical company would celebrate, while spending $34 billion to achieve it is a level of expenditure that only an AI research facility could manage.

      OpenAI has access to this capital because investors continue to provide it. Earlier this year, the company completed a $122 billion funding round at a valuation of $852 billion, marking the largest private fundraising on record, supported by SoftBank, Nvidia, and numerous others.

      However, this valuation is being questioned by some of OpenAI's own investors, one of whom told the Financial Times that participating in the funding round implies an expectation of a future public valuation exceeding $1.2 trillion.

      This leads to the company's initial public offering (IPO). OpenAI has confidentially filed with the U.S. Securities and Exchange Commission and is preparing to go public, aiming for a valuation of up to $1 trillion. A listing at such a level would rank among the largest in history. The disclosed spending figures provide a preliminary insight into what potential shareholders would be investing in.

      The more difficult figure to interpret is the reported loss. Analysis of the leaked financial data suggests that OpenAI’s net loss for 2025 is approximately $39 billion, increased by restructuring and other non-cash expenses; excluding these items, the operating loss appears to be closer to $8 billion.

      These two figures convey different narratives, and which one is more significant will depend on whether the larger loss proves to be a temporary anomaly or a fundamental issue. OpenAI has not released audited financial statements, and the company has opted not to comment on the leaked figures.

      What remains undisputed is the direction of the spending. OpenAI has informed investors that it anticipates investing around $600 billion in AI infrastructure by 2030. The $34 billion spent last year represents an early installment towards that long-term commitment.