{"slug": "openai-losses-increased-nearly-8x-in-2025-with-spending-hitting-34b", "title": "OpenAI Losses Increased Nearly 8X in 2025, with Spending Hitting $34B", "summary": "OpenAI's losses surged to $38.5 billion in 2025, up from $5.09 billion in 2024, as spending hit $34 billion against $13.07 billion in revenue, according to audited financial documents. The massive losses were driven by $19.18 billion in research and development costs and a $41.55 billion charge from converting to a for-profit entity. OpenAI paid Microsoft $17.2 billion for services, including $10.59 billion for research and development.", "body_md": "*Soundtrack: *__In Flames - Colony__\n\n*To further support my independent journalism, please subscribe to my premium newsletter. It’s $7 a month or $70 a year. If you’re subscribed to the free newsletter and logged in, you should see at the bottom right hand corner of your screen a little circle you can click, and you’ll be able to sign up for premium. *\n\nToday, I can exclusively report, based on audited financial documents viewed by this publication that have been independently verified by the Financial Times, that OpenAI lost around $38.5 billion in 2025, as well as other crucial details about the financial condition of the company.\n\nDue to the seriousness of this story, I am not going to do very much editorializing, as the numbers speak for themselves.\n\n# OpenAI Lost $5.09 Billion In 2024\n\n### 2024 — OpenAI Had $3.7 Billion In Revenue, $12.4 Billion In Costs and Expenses, and a net loss attributable to the company of $5.09 Billion.\n\nOpenAI’s financial statements tell the story of a company with incredible losses.\n\n**Revenue:**$3.7 billion** Cost of Revenue:**$2.65 billion** Research and Development:**$7.81 billion** Sales and Marketing:**$1.11 billion** General and Administrative:**$907 Million** Total Costs and Expenses:**$12.48 billion** Loss from Operations:**$8.78 billion\n\nAdditional factors – including interest income and interest expense – left it with a net loss of $8.84 billion. It then marked $3.74 billion of losses as “net loss attributable to noncontrolling members capital,” leaving the net loss attributable to the company as $5.09 billion.\n\nIt’s unclear what this means, nor how OpenAI reconciled the removal of $3.74 billion in costs. I will not speculate further.\n\n# OpenAI Lost $38.5 Billion In 2025\n\n### 2025 — OpenAI Had $13.07 Billion In Revenue, $34 Billion In Costs and Expenses, and $20.92 Billion In Losses, with a net loss attributable to the company of $38.53 Billion\n\n**Revenue:**$13.07 billion** Cost of Revenue:**$7.5 billion** Research and Development:**$19.18 billion** Sales and Marketing:**$5.73 billion** General and Administrative:**$1.57 Billion** Total Costs and Expenses:**$34 billion** Loss from Operations:**$20.92 billion\n\nPlease note that 2025 was the year that OpenAI converted from a non-profit to a for-profit entity, leading to a $41.55 billion loss due to changes in fair value of convertible interests and warrant liability.\n\nTaking into account other minor factors like interest income and interest expense, OpenAI is left with a net loss of $60.35 billion, which it lowered to $38.53 billion by removing $17.87 billion in costs via that “net loss attributable to noncontrolling members capital” and another $3.95 billion via a “net loss attributable to redeemable noncontrolling interests.”\n\nUltimately, the net loss attributable to OpenAI in 2025 was $38.5 billion.\n\nAt the end of the year, OpenAI had just over $50 billion in assets, with almost half of that in cash.\n\n# OpenAI Was Paid $867 Million By SoftBank and $303 Million From Microsoft In 2025\n\nIn 2025, SoftBank paid OpenAI $867 million. Microsoft paid it $303 million.\n\nThe documents revealed how much OpenAI paid Microsoft for services. In the 2025 calendar year, OpenAI paid Microsoft $10.59 billion for “Research and development” expenses. We believe this most likely refers to the cost of training OpenAI’s models.\n\nThe documents also mention a $6.047 billion charge related to “cost of revenue,” a $527 million charge for sales and marketing, and $42 million in “general and administrative expenses.” In total, OpenAI’s expenses to Microsoft amounted to $17.2 billion.\n\nAccording to the figures, OpenAI had liabilities to Microsoft of $3.64 billion at the close of the calendar year, and additional $21 million in “accrued expenses and other current liabilities.” The documents also mention a further $58 million in non-current liabilities.\n\n# Further Notes\n\nI intend to follow up this story in the next month with more in-depth reporting related to the documents. The documents are detailed, and I need time to fully parse them. Once I have done so, you’ll know.\n\nThe financial condition of OpenAI is deeply concerning. $38.53 billion in losses are astronomical, and far higher than most believed it would be. Losses also appear to be mounting year-over-year at a dramatic rate, and I’m not sure how this company finds a way toward any kind of sustainability or profitability.\n\nAs discussed, I have not editorialized much today. I believe the best thing I can do for the general public is to deliver this news as plainly as possible.\n\nAs I mentioned at the beginning, if you liked this piece, you should subscribe to my premium newsletter. 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My Hater's Guides To the](https://www.wheresyoured.at/premium-the-haters-guide-to-the-ai-bubble-vol-2/)\n\n__the AI bubble writ large__[,](https://www.wheresyoured.at/hatersguide-saas/)\n\n__SaaSpocalypse__[and](https://www.wheresyoured.at/hatersguide-privatecredit/)\n\n__Private Credit__[are essential to understanding our current financial system, and my guide to how](https://www.wheresyoured.at/hatersguide-pe/)\n\n__Private Equity__[pairs nicely with my](https://www.wheresyoured.at/how-openai-kills-oracle/)\n\n__OpenAI Kills Oracle__[.](https://www.wheresyoured.at/haters-guide-oracle/)\n\n__Hater's Guide To Oracle__", "url": "https://wpnews.pro/news/openai-losses-increased-nearly-8x-in-2025-with-spending-hitting-34b", "canonical_source": "https://www.wheresyoured.at/exclusive-openai-financials/", "published_at": "2026-06-16 04:05:48+00:00", "updated_at": "2026-06-16 04:21:59.657911+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-research", "ai-startups", "ai-infrastructure"], "entities": ["OpenAI", "Microsoft", "SoftBank", "Financial Times"], "alternates": {"html": "https://wpnews.pro/news/openai-losses-increased-nearly-8x-in-2025-with-spending-hitting-34b", "markdown": "https://wpnews.pro/news/openai-losses-increased-nearly-8x-in-2025-with-spending-hitting-34b.md", "text": "https://wpnews.pro/news/openai-losses-increased-nearly-8x-in-2025-with-spending-hitting-34b.txt", "jsonld": "https://wpnews.pro/news/openai-losses-increased-nearly-8x-in-2025-with-spending-hitting-34b.jsonld"}}