OpenAI spent $34bn in race to dominate field last year

Wednesday, June 17, 2026

OpenAI spent roughly $34 billion in 2023, mainly on research and development, resulting in a net loss of about $39 billion largely due to a one-time accounting charge related to its previous corporate structure. Despite these losses, the company secured $12 billion in new funding early in 2024 and is preparing for a public offering that could value it above $1 trillion.

OpenAI spent approximately $34 billion in 2023 as it accelerated efforts to establish dominance in the rapidly expanding artificial intelligence market ahead of a planned public listing. According to audited financial data reviewed by sources familiar with the matter, the company allocated around $19 billion to research and development, and nearly $6 billion to sales, marketing, and other operating expenses.

This significant increase in spending from the prior year underscores the intense investment required to develop advanced AI models, support data center operations, and attract leading talent. Despite generating an estimated $13 billion in revenue last year, OpenAI’s costs have considerably outpaced its income.

The company’s net loss attributable to OpenAI surged to about $39 billion in 2023, a nearly eightfold increase from the $5 billion loss recorded in 2024. However, a person familiar with the financials indicated that the bulk of this loss stemmed from a one-time, non-cash accounting charge linked to the firm’s prior corporate structure rather than its core business performance.

Previously operating under a system in which investors held convertible interest rights instead of traditional equity, OpenAI was subject to US accounting rules requiring periodic revaluation of these interests as the company’s valuation rose. This resulted in a roughly $30 billion charge reflecting the increased value of investor rights. Following OpenAI’s transition late last year to a public benefit corporation structure, this accounting treatment is not expected to recur.

Excluding the non-cash charge and other expenses such as stock-based compensation and Microsoft-provided computing credits, OpenAI’s adjusted losses for the year stand at about $8 billion, according to the source.

OpenAI has so far funded its expansive growth through significant investor backing. Early in 2024, the company secured $12 billion in fresh capital at a valuation of $730 billion, not including this latest infusion. The firm is now preparing for a public listing that could value it at more than $1 trillion.

OpenAI did not respond to requests for comment.