Despite the suggestion implied by the first word of its name, OpenAI is not exactly the most “open” company when it comes to sharing details about the inner workings of its business. However, the latest information provided by the company suggests that its ChatGPT for Enterprise subscription tier is off to a strong start.
Impressive Adoption and Revenue
Since its launch in late August 2023, ChatGPT for Enterprise has gained over 260 business customers with more than 150,000 distinct users. According to OpenAI’s Chief Operating Officer Brad Lightcap in an interview with Bloomberg, the pricing for the subscription tier varies and is not openly disclosed on OpenAI’s website.
“One user on Reddit was quoted at $60 per seat, so at 150,000 users, that’s $9 million a month in revenue or $108 million annualized,” said Brad Lightcap.
This substantial revenue is just a fraction of OpenAI’s reported total annualized revenue of $1.6 billion, according to The Information.
Enterprising Customers
OpenAI has not provided a full list of its ChatGPT for Enterprise customers, but it did mention some of its notable clients in a blog post announcing its new ChatGPT Team tier. The mentioned customers include Block, Canva, Carlyle, The Estée Lauder Companies, PwC, and Zapier.
“The fact that OpenAI shared the number and even a few names suggests a significant demand by the corporate world for OpenAI’s signature large language model (LLM)-powered chatbots,” explained Brad Lightcap.
Despite concerns about AI models, including hallucinations and regulatory issues, enterprise leaders and IT decision-makers are still embracing OpenAI’s technology. This is evident in their willingness to leverage OpenAI’s offerings, even amidst competition from open-source alternatives like Meta’s Llama 2 and Mistral’s Mixtral.
OpenAI’s partnership with Microsoft, a well-known and trusted enterprise software provider, further strengthens its position in the market. The integration of several OpenAI offerings into Microsoft’s own portfolio enhances the appeal of OpenAI’s solutions.
Considering the choices available to enterprises—setting up a potentially complex open-source AI model or opting for a ready-to-use solution from OpenAI, with built-in support and troubleshooting—it’s no surprise that many are willing to invest in OpenAI’s offerings.
OpenAI’s recent launch of the ChatGPT Team subscription tier, with publicly listed pricing at $30 per user per month, showcases their strategy to cater to the small-to-medium-sized business (SMB) market. While some argue that marketing the higher-priced ChatGPT Enterprise tier would have been more lucrative, the affordability and comparative functionality of the ChatGPT Team tier can attract a broader customer base.
Overall, OpenAI’s ChatGPT for Enterprise is gaining traction and revenue as it continues to meet the demands of the corporate world.
