Waitlist open Our new book, AI Engineering For Production, is coming before the end of 2026. Get the release date first.New book: AI Engineering For Production, coming before the end of 2026. Join the waitlist
Name: Towards AI Legal Name: Towards AI, Inc. Description: Towards AI is the world's leading artificial intelligence (AI) and technology publication. Read by thought-leaders and decision-makers around the world. Phone Number: +1-650-246-9381 Email: pub@towardsai.net
228 Park Avenue South New York, NY 10003 United States
Website: Publisher: https://towardsai.net/#publisher Diversity Policy: https://towardsai.net/about Ethics Policy: https://towardsai.net/about Masthead: https://towardsai.net/about
Name: Towards AI Legal Name: Towards AI, Inc. Description: Towards AI is the world's leading artificial intelligence (AI) and technology publication. Founders: Roberto Iriondo, , Job Title: Co-founder and Advisor Works for: Towards AI, Inc. Follow Roberto: X, LinkedIn, GitHub, Google Scholar, Towards AI Profile, Medium, ML@CMU, FreeCodeCamp, Crunchbase, Bloomberg, Roberto Iriondo, Generative AI Lab, Generative AI Lab VeloxTrend Ultrarix Capital Partners Denis Piffaretti, Job Title: Co-founder Works for: Towards AI, Inc. Louie Peters, Job Title: Co-founder Works for: Towards AI, Inc. Louis-François Bouchard, Job Title: Co-founder Works for: Towards AI, Inc. Cover:
Towards AI Cover
Logo:
Towards AI Logo
Areas Served: Worldwide Alternate Name: Towards AI, Inc. Alternate Name: Towards AI Co. Alternate Name: towards ai Alternate Name: towardsai Alternate Name: towards.ai Alternate Name: tai Alternate Name: toward ai Alternate Name: toward.ai Alternate Name: Towards AI, Inc. Alternate Name: towardsai.net Alternate Name: pub.towardsai.net
5 stars – based on 497 reviews

Frequently Used, Contextual References

TODO: Remember to copy unique IDs whenever it needs used. i.e., URL: 304b2e42315e

Resources

OpenAI’s B Run Rate Proves Free ChatGPT Is Dead
Latest   Machine Learning

OpenAI’s $40B Run Rate Proves Free ChatGPT Is Dead

Last Updated on August 24, 2026 by Editorial Team

Author(s): MohamedAbdelmenem

Originally published on Towards AI.

Forget the 1B users. The 40% enterprise revenue split shows where the real money is.

OpenAI is generating a $40 billion annualized revenue run rate, equating to roughly $3.3 billion monthly, and 40 percent of it now comes from enterprise B2B contracts. That leaked CFO metric renders the celebration over ChatGPT’s 1 billion consumer users irrelevant, turning the user base into an expensive liability ahead of a target 2027 IPO. Here is the exact margin math driving that $852 billion valuation, and how enterprise CIOs must lock in their infrastructure before public shareholders force the company to throttle its consumer tiers.

OpenAI’s B Run Rate Proves Free ChatGPT Is Dead

The free tier has become a massive compute liability, forcing a shift to high-margin enterprise infrastructure. Made By Author.

The article argues that the headline “1B users” is misleading, since the company’s reporting shift from weekly to monthly metrics may indicate stalled retention rather than true momentum. It claims OpenAI’s $40B run rate is increasingly powered by enterprise and API revenue—about 40%—which enables predictable recurring margins needed for an IPO and “S-1 sanitization” (i.e., cleaning up financials by cutting operational fat). It further explains the “compute liability” of serving free consumer traffic, describing how unpaid users effectively load-test infrastructure and drive inference costs that enterprise revenue must offset. Finally, it lays out a CIO-oriented playbook: audit and cap consumer-tier workflows, lock in multi-year enterprise contracts, and decouple non-critical workloads (especially RAG) to reduce dependence on low-cost API assumptions before public-market pressure forces consumer-tier throttling.

Read the full blog for free on Medium.

Join thousands of data leaders on the AI newsletter. Join over 80,000 subscribers and keep up to date with the latest developments in AI. From research to projects and ideas. If you are building an AI startup, an AI-related product, or a service, we invite you to consider becoming a sponsor.

Published via Towards AI


Towards AI Academy

We Build Enterprise-Grade AI. We'll Teach You to Master It Too.

15 engineers. 100,000+ students. Towards AI Academy teaches what actually survives production.

Start free — no commitment:

→ AI Engineering For Production — our new book, coming before the end of 2026. Join the waitlist.

→ Agents Architecture Cheatsheet — 3 years of architecture decisions in 6 pages

Our courses:

→ AI Engineering Certification — 90+ lessons from project selection to deployed product. The most comprehensive practical LLM course out there.

→ Agent Engineering Course — Hands on with production agent architectures, memory, routing, and eval frameworks — built from real enterprise engagements.

→ AI for Work — Understand, evaluate, and apply AI for complex work tasks.

Note: Article content contains the views of the contributing authors and not Towards AI.