Author: Ed Zitron
Compiled by: Deep Tide TechFlow
Deep Tide Introduction: OpenAI's audited financial report has been exposed for the first time, revealing losses far exceeding external expectations. The loss soared from $5.1 billion the previous year to $38.5 billion in 2025, with R&D expenditure as high as $19.2 billion, while Microsoft received $17.2 billion in fees from OpenAI in a single year. How far is this AI star company, valued at hundreds of billions, from achieving profitability?
Today, I can exclusively report, based on audited financial documents reviewed by this publication (independently verified by the Financial Times), that OpenAI lost approximately $38.5 billion in 2025, along with other key details about the company's financial condition.
Given the seriousness of this report, I will not comment extensively, as the numbers speak for themselves.
OpenAI Lost $5.1 Billion in 2024
2024 – OpenAI revenue was $3.7 billion, costs and expenses were $12.4 billion, and the net loss attributable to the company was $5.1 billion.
OpenAI's financial statements tell the story of a company with staggering losses.
Revenue: $3.7 billion
Cost of Revenue: $2.65 billion
Research and Development: $7.81 billion
Sales and Marketing: $1.11 billion
General and Administrative: $907 million
Total Costs and Expenses: $12.48 billion
Operating Loss: $8.78 billion
Other factors including interest income and interest expense brought its net loss to $8.84 billion. It then marked $3.74 billion of the loss as "Net loss attributable to noncontrolling member capital," making the net loss attributable to the company $5.1 billion.
It is currently unclear what this means or how OpenAI adjusted to remove $3.74 billion in costs. I will not speculate further.
OpenAI Lost $38.5 Billion in 2025
2025 – OpenAI revenue was $13.07 billion, costs and expenses were $34 billion, the loss was $20.92 billion, and the net loss attributable to the company was $38.53 billion.
Revenue: $13.07 billion
Cost of Revenue: $7.5 billion
Research and Development: $19.18 billion
Sales and Marketing: $5.73 billion
General and Administrative: $1.57 billion
Total Costs and Expenses: $34 billion
Operating Loss: $20.92 billion
Note that 2025 was the year OpenAI transitioned from a non-profit to a for-profit entity, resulting in a $41.55 billion loss due to changes in the fair value of convertible equity and warrant liabilities.
Considering other minor factors such as interest income and interest expense, OpenAI's net loss was $60.35 billion. This was reduced to $38.53 billion by removing $17.87 billion via "Net loss attributable to noncontrolling member capital" and an additional $395 million via "Net loss attributable to redeemable noncontrolling interests."
Ultimately, the net loss attributable to OpenAI in 2025 was $38.5 billion.
At year-end, OpenAI had assets just over $50 billion, nearly half of which was cash.
SoftBank Paid OpenAI $867 Million, Microsoft Paid $303 Million in 2025
In 2025, SoftBank paid OpenAI $867 million. Microsoft paid $303 million.
The documents disclose how much OpenAI paid Microsoft in service fees. In the 2025 calendar year, OpenAI paid Microsoft $10.59 billion for "research and development" expenses. We believe this likely refers to the costs of training OpenAI models.
The documents also mention a $6.047 billion fee related to "cost of revenue," $527 million in sales and marketing expenses, and $42 million in "general and administrative expenses." In total, OpenAI's payments to Microsoft amounted to $17.2 billion.
According to the data, at the end of the calendar year, OpenAI had liabilities to Microsoft of $3.64 billion, plus another $21 million in "accrued expenses and other current liabilities." The documents also mention an additional $58 million in non-current liabilities.
Follow-up Note
I intend to follow up on this story next month with a more in-depth report related to these documents. The documents are quite detailed, and I need time to fully parse them. You will know once it's done.
OpenAI's financial condition is deeply concerning. A loss of $38.53 billion is an astronomical figure, far higher than most anticipated. The losses also appear to be growing at an alarming rate year over year. I am unsure how this company finds a path to any form of sustainability or profitability.
As mentioned, I have not commented much today. I believe the best thing I can do for the public is to deliver this news as concisely as possible.
