OpenAI Burned $34 Billion in One Year — Can It Actually Make Money Before Its IPO?

TLDR

• OpenAI spent $34 billion in 2025, with $19 billion going to research and development
• The company also spent nearly $6 billion on sales and marketing
• OpenAI generated around $13 billion in revenue in 2025 but posted a net loss of $39 billion
• The company confidentially filed for an IPO with the U.S. SEC last week
• OpenAI is exploring price cuts to win customers from rival Anthropic

OpenAI spent $34 billion in 2025 as it pushed to grow its position in the AI market ahead of a planned public offering. The figures were reported by the Financial Times, citing audited financial data.

The ChatGPT maker directed about $19 billion toward research and development. It spent nearly $6 billion on sales and marketing, with additional costs making up the rest.

The spending growth far outpaced revenue. OpenAI brought in around $13 billion in revenue in 2025 but still posted a net loss of roughly $39 billion for the year.

That gap between spending and revenue has drawn attention from potential investors as the company moves closer to going public.

OpenAI confidentially filed for an IPO with the U.S. Securities and Exchange Commission last week. The company has not set a public timeline for the offering.

OpenAI said it still sees value in staying private for now but wants the option to move forward with an IPO if conditions make it the right call. The confidential filing lets regulators review documents before they are made public.

Costs and Competition

The heavy spending comes as OpenAI faces rising competition in the AI industry. To deal with mounting costs, the company shelved several projects in late 2025 and early 2026, including its video generation app Sora.

The company is also working to bring down prices. Reports from last week said OpenAI is considering cutting the cost of AI tokens — the unit used to measure AI usage — to attract customers away from rival Anthropic.

CEO Sam Altman has publicly acknowledged that the cost of using AI has become a problem for businesses. Making services more affordable is now a stated priority.

OpenAI is trying to balance continued investment with tighter cost control as it prepares its books for public scrutiny.

What Investors Are Watching

The spending figures send mixed signals for investors. On one side, they show a company investing heavily in a fast-growing market.

On the other, the large losses raise questions about when — or whether — OpenAI can reach profitability. Investors will want to know if its AI leadership can translate into earnings over time.

If the market believes OpenAI can convert its spending into long-term profit, it could support a high valuation at IPO. If not, the losses could weigh on its stock when it eventually lists.

OpenAI has not confirmed a valuation target or an exact date for going public. The SEC review process is ongoing.

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