OpenAI has lost its pre-eminence in the AI space over the last quarter, with Google and Anthropic emerging as serious contenders, but it’s still growing its revenues at a rapid clip.
OpenAI’s annualized revenue reached $20 billion in 2025, representing a remarkable trajectory for a company its size and mirrors the explosive expansion of AI compute infrastructure. This growth comes as OpenAI’s computational capacity scaled roughly 3x per year, jumping from 0.2 GW in 2023 to 0.6 GW in 2024, and reaching an estimated 1.9 GW in 2025.
The revenue figures demonstrate OpenAI’s ability to monetize its expanding infrastructure effectively. The company’s revenue grew from $2 billion in 2023 to $6 billion in 2024, before reaching the $20 billion milestone in 2025—maintaining the same exponential curve as its compute scaling.
However, OpenAI faces intensifying competition in the enterprise market. Anthropic has emerged as a formidable challenger, with CEO Dario Amodei revealing that the company’s revenue has grown 10x annually. “We went from zero to $100 million in 2023, we went from $100 million to $1 billion in 2024, and this year, in the first half of the year, we’ve gone from $1 billion to, I think as of speaking today, it’s well above $4 billion, it might be $4.5 billion,” Amodei said in an interview in mid 2025.
More concerning for OpenAI is the shift in enterprise API market share. While OpenAI commanded 60% of the enterprise LLM API market in 2023, this figure plummeted to 34% in 2024 and further declined to 27% in 2025. Meanwhile, competitors have gained significant ground—Anthropic captured 40% market share in 2025, up from 24% in 2024, while Google rose from 12% to 21%. In the specialized coding market, Anthropic now dominates with 54% share, compared to OpenAI’s 21%.
The competitive pressure extends to consumer traffic as well. Google’s Gemini has been steadily gaining ground, with its traffic share rising above 20% for the first time, while ChatGPT’s share has declined to 64%. Google has gained this share steadily over the last few months, and ChatGPT — which once had as much as 85% share — risks soon falling below the 50% mark.
In light of these developments, and to bolster future revenue growth, OpenAI is introducing advertisements into ChatGPT, a move that could significantly boost its revenues in 2026 by diversifying beyond its current subscription and API-based business model. This strategic shift comes as the company seeks to maintain its growth momentum amid increasing competition and market fragmentation. But despite the erosion of its market dominance, OpenAI’s ability to generate $20 billion in annual revenue demonstrates the robust demand for AI services and the company’s continued strength in monetizing its technology at scale.