Artificial Intelligence has become one of the hottest topics of the present time, and OpenAI is the cherry on top. It is famous for creating ChatGPT and has developed from a small research laboratory into one of the world’s most valuable startups. But what really is OpenAI? How it started, how it earns money, who runs it, and why it is different from other AI companies, such as Perplexity and Anthropic?
In this article, we will walk you through OpenAI’s story – from its founder and structure to its business models, products, challenges, and future – so you get a complete picture of this groundbreaking startup.
The Beginning Of OpenAI
OpenAI started in San Francisco in December 2015. Sam Altman, Elon Musk, Ilya Sutskever, and Greg Brockman, a group of technical leaders, wanted to create artificial intelligence that would be safe and useful for all. First, OpenAI was established as a nonprofit. This idea was simple yet ambitious: to make sure that Artificial General Intelligence (AGI) would benefit humanity, not harm it.
A New Structure to Grow
In 2019, OpenAI underwent a structural change. It formed a “capped-profit” company under a nonprofit parent. This meant that it could raise money and return to investors, but with a limit on profits. The goal was to balance financial development with the original mission of security. This unique structure helped bring openIA significant investments, most notably from Microsoft, while still claiming to focus on AI development.
The Big Breakthrough: ChatGPT
The world took notice of OpenAI at the end of 2022 when it launched ChatGPT. Suddenly, millions of people were interacting with an AI that could write essays, answer questions, joke in the draft code, and even behave in human-like ways. ChatGPT went viral almost overnight.
For many people, this was the first time AI felt honest, practical, and even fun. After that, OpenAI added more products: DALL·E for image generation, Whisper for speech recognition, and Sora for text-to-video creation.
Leadership At OpenAI
Sam Altman, the young technology aficionado, became the face of OpenAI. He had already made a name for himself to run Y Combinator, a famous startup accelerator. In 2019, he stepped into the role of CEO of OpenAI. In 2023, the major drama occurred when the board briefly removed him, only to reinstate him after a few days.
Today, he continues to lead OpenAI, joined by new officers, including Fidji Simo (former CEO of Instacart), who now helps run his business and applications. This suggests that OpenAI is no longer a cutting-edge laboratory; it is becoming a seasoned corporate veteran.
How does OpenAI make money?
OpenAI generates revenue in three primary ways. First, it offers ChatGPT membership for individuals and teams. Second, it sells enterprise plans for large organizations. Third, it provides API access to developers and businesses that want to create their own app using the OpenAI model. Thanks to this mixture, OpenAI’s revenue exceeded $12 billion in 2025, with some reports stating that it could be close to $20 billion by the end of the year. Investors now value the company between $300 billion and $500 billion, making it one of the most valuable startups ever.
The High Cost of AI
Building and running of advanced AI models is expensive. OpenAI spends billions on computing power every year. To control these costs, it is planning huge new data centers and even searching for custom chips manufactured with partners such as Broadcom and TSMC. OpenAI has begun renting computational power from various providers, including Microsoft, Google, and CoreWeave. By doing this, the company is expected to stay independent and reduce dependence on any single partner.
Large deal and acquisition
In 2025, OpenAI made headlines by purchasing a hardware startup, “io,” founded by designer Joni Ive, for $6.5 billion. This was a major step towards creating AI hardware in-house. At the same time, OpenAI signed a $200 million deal with the US Department of Defense and collaborated with the UK government to integrate AI equipment into public services. It also launched a $50 million fund to support nonprofit and community projects, indicating that it still wants to focus on the public good.
Challenges and controversies
Like any fast-growing company, OpenAI has faced its share of problems. Authors, publishers, and media companies have filed a lawsuit for the use of their content in training data. While conducting a profit inspection, its shift towards a public benefit corporation has also raised questions about the government. Within the company, a heated debate has been ongoing regarding security, morality, and workplace tension. These disputes remind people that AI is not only a technical challenge, but also a social one.
Push The Boundaries
Despite the challenges, OpenAI continues to move forward. In 2025, its model showed progress in solving advanced mathematics problems, even at the level of an Olympiad medal winner. It is also developing new products, such as an operator and AI agents, that can use websites and apps on your behalf. The company’s long-term ambition is clear: to create an AGI that can argue, act, and learn from today’s chatbots.
OpenAI vs. Perplexity vs Anthropic
OpenAI is not just an AI startup making waves. Perplexity focuses on having an “answer engine“, combining AI with live web results and giving clear quotes. It is particularly popular with researchers who want verified sources. On the other hand, Anthropic highlights security and reliability. Its Claude model is designed to follow a strong railing and handle very long documents, making them attractive to businesses and professionals. Compared to these, OpenAI is broader. It offers a wide range of tools, from creative apps like DALL·E to enterprise-level AI infrastructure. However, Perplexity is about reliable answers, Anthropic is about safe, steerable assistants, and OpenAI is about building an all-in-one AI platform at a massive scale.
The Road Ahead
OpenAI is one of the most influential companies in the world, having grown from a mission-driven laboratory. It is shaping how students learn, how businesses work, and how governments provide services. However, questions remain: Can it strike a balance between profit and responsibility? Can it keep costs under control as models become more powerful? And will it be right for the founder’s mission to make AI safe? These challenges are opening faces as they step into the future of artificial intelligence.