OpenAI
| OpenAI | |
|---|---|
| File:OpenAI Pioneer Building.jpg | |
| OpenAI headquarters in Pioneer Building, San Francisco | |
| Type | Non-profit organization (OpenAI Inc.) For-profit corporation (OpenAI Global LLC) |
| Industry | Artificial intelligence |
| Founded | December 11, 2015 |
| Founders | Sam Altman Elon Musk Ilya Sutskever Greg Brockman Trevor Blackwell Vicki Cheung Andrej Karpathy Durk Kingma Jessica Livingston John Schulman Pamela Vagata Wojciech Zaremba |
| Headquarters | Pioneer Building, San Francisco, California, United States |
| Key people | Sam Altman (CEO) Greg Brockman (President) Mira Murati (CTO) Sarah Friar (CFO) Brad Lightcap (COO) Jakub Pachocki (Chief Scientist) Bret Taylor (Chairman)
|
| Revenue | $12.7 billion (projected 2025)
|
| Valuation | $500 billion (October 2025) |
| Employees | 3,000+ (mid-2025) |
| Website | openai.com |
- See also: Organizations, Artificial Intelligence and Machine Learning
Introduction
OpenAI is an artificial intelligence (AI) research and deployment company founded on December 11, 2015, in San Francisco, California [1]. The organization consists of two entities: OpenAI Inc., a 501(c)(3) non-profit organization, and OpenAI Global LLC, a for-profit subsidiary controlled by the non-profit parent [2]. Its stated mission is to ensure that artificial general intelligence (AGI), highly autonomous systems that outperform humans at most economically valuable work, benefits all of humanity [3].
The company gained widespread public attention with the release of ChatGPT in November 2022, which reached 100 million users in just two months, becoming the fastest-growing consumer application in history [4]. As of October 2025, ChatGPT serves 700 million weekly active users worldwide, with adoption by 92% of Fortune 500 companies [5].
OpenAI has developed groundbreaking AI models including the GPT series of large language models, DALL-E image generation systems, Sora video generation technology, and Whisper speech recognition. As of October 2025, the company has achieved a valuation of $500 billion following a secondary share sale, making it the world's most valuable private company [6].
History
Founding and Early Years (2015-2019)
OpenAI was founded on December 11, 2015, as a non-profit artificial intelligence research laboratory by Sam Altman, Elon Musk, Ilya Sutskever, Greg Brockman, Trevor Blackwell, Vicki Cheung, Andrej Karpathy, Durk Kingma, Jessica Livingston, John Schulman, Pamela Vagata, and Wojciech Zaremba [1]. The founding members and early backers, including Reid Hoffman, Peter Thiel, Amazon Web Services, Infosys, and YC Research, collectively pledged over $1 billion to the venture, though only about $130 million was collected by 2019 [7].
The organization aimed to develop open-source AI research to mitigate existential risks from AGI and ensure its benefits would be widely distributed rather than concentrated in the hands of a few corporations [1]. Early projects included:
- 2016: Released OpenAI Gym, a toolkit for reinforcement learning research [8]
- 2016: Received a DGX-1 supercomputer from Nvidia, the first unit shipped
- 2016: Launched OpenAI Universe, a platform for training AI agents across various environments [9]
- 2018: Released GPT-1, introducing the transformer-based language model approach with 117 million parameters [10]
In February 2018, Elon Musk resigned from the board citing potential conflicts of interest with his work on AI at Tesla, though he remained a donor and advisor [11].
Transition to "Capped-Profit" and Microsoft Partnership (2019-2022)
In March 2019, OpenAI underwent a significant structural transformation, creating OpenAI LP (later renamed OpenAI Global LLC), a "capped-profit" for-profit entity. This model limits investor returns to 100 times their investment, with excess profits flowing back to the non-profit parent [2]. This restructuring was motivated by the immense computational and capital requirements for developing AGI, estimated at billions of dollars.
In July 2019, Microsoft announced a $1 billion investment in OpenAI, marking the beginning of a strategic partnership [12]. The partnership provided:
- Exclusive cloud computing through Microsoft Azure
- Joint development of Azure AI supercomputing technologies
- Microsoft as exclusive commercial partner for OpenAI technologies
Key releases during this period:
- February 2019: GPT-2 with 1.5 billion parameters, initially withheld due to concerns about malicious use [13]
- June 2020: GPT-3 with 175 billion parameters, demonstrating unprecedented few-shot learning capabilities [14]
- September 2020: Microsoft licensed exclusive use of GPT-3 technology [15]
- January 2021: DALL-E, first text-to-image generation model
- April 2022: DALL-E 2 with improved resolution and capabilities
ChatGPT and Mainstream Success (2022-2023)
On November 30, 2022, OpenAI released ChatGPT, a conversational AI chatbot based on GPT-3.5 using Reinforcement Learning from Human Feedback (RLHF) [16]. The release represented a pivotal moment in AI history:
- Reached 1 million users in 5 days
- 100 million users in 2 months (fastest consumer app growth ever)
- Sparked global conversation about AI capabilities and risks
- Led to rapid AI development across the industry
In January 2023, Microsoft announced an expanded multi-year, multi-billion dollar investment (reported as $10 billion), deepening the partnership and integrating OpenAI models across Microsoft products including Bing and Microsoft 365 [17].
March 14, 2023, saw the release of GPT-4, a multimodal model capable of processing both text and images, showing human-level performance on various professional and academic benchmarks [18].
Board Crisis and Leadership Turmoil (November 2023)
On November 17, 2023, OpenAI experienced an unprecedented governance crisis when the board of directors abruptly removed Sam Altman as CEO, citing that he "was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities" [19]. The board action was reportedly led by chief scientist Ilya Sutskever and board members Helen Toner, Tasha McCauley, and Adam D'Angelo [20].
The decision triggered immediate backlash:
- President Greg Brockman resigned in protest
- Over 700 of OpenAI's ~770 employees (>95%) signed an open letter threatening to resign and join Microsoft unless Altman was reinstated [21]
- Microsoft CEO Satya Nadella announced Altman and Brockman would lead a new AI research unit at Microsoft
- Major investors including Microsoft, Thrive Capital, and Sequoia Capital pressured for Altman's return
After five days of intense negotiations, on November 22, 2023, Altman was reinstated as CEO with a new initial board comprising:
- Bret Taylor (Chairman, former co-CEO of Salesforce)
- Larry Summers (former U.S. Treasury Secretary)
- Adam D'Angelo (CEO of Quora, only remaining member from previous board) [22]
The crisis reportedly stemmed from fundamental disagreements about AI safety, commercialization pace, and the balance between the non-profit mission and for-profit operations [23].
Recent Developments (2024-2025)
2024: Expansion and Departures
- May 2024:
- Released GPT-4o ("o" for "omni"), a natively multimodal model processing text, images, and audio [24]
- Co-founder and Chief Scientist Ilya Sutskever departed; Jakub Pachocki appointed as new Chief Scientist
- Superalignment co-lead Jan Leike resigned, citing safety concerns: "safety culture and processes have taken a backseat to shiny products" [25]
- July 2024: Launched GPT-4o mini, a smaller, more efficient model [26]
- September 2024:
- Introduced o1 reasoning models for complex problem-solving [27]
- CTO Mira Murati announced departure after 6.5 years
- October 2024: Raised $6.6 billion at $157 billion valuation
- December 2024:
2025: Unprecedented Growth
- January 2025: Announced the Stargate Project, a $500 billion AI infrastructure initiative with SoftBank, Oracle, and MGX [29]
- March 2025: Raised $40 billion at $300 billion valuation [30]
- May 2025:
- September 2025:
- October 2025: Valuation reached $500 billion following secondary share sale to SoftBank, Dragoneer, and Thrive [6]
Corporate Structure and Governance
Organizational Structure
OpenAI operates under a unique hybrid structure designed to balance its research mission with commercial needs [2]:
| Entity | Type | Role | Established |
|---|---|---|---|
| OpenAI Inc. | 501(c)(3) Non-profit | Overall governance body; Controls the organization's mission | 2015 |
| OpenAI Global LLC | For-profit subsidiary | Commercial operations; Product development; Employee equity | 2019 |
| OpenAI Holdings LLC | For-profit subsidiary | Investment vehicle for external capital | 2019 |
| OpenAI GP LLC | General Partner | Controls OpenAI LP operations | 2019 |
The non-profit board maintains ultimate control over the organization's direction and ensures adherence to its mission of ensuring AGI benefits all of humanity. The capped-profit structure limits investor returns to 100x their investment (for early investors), with excess value flowing to the non-profit [33].
Board of Directors (as of October 2025)
| Name | Role | Background | Joined |
|---|---|---|---|
| Bret Taylor | Chairman | Former co-CEO of Salesforce, former CTO of Facebook | November 2023 |
| Sam Altman | CEO, Director | Co-founder, former president of Y Combinator | March 2024 (rejoined board) |
| Adam D'Angelo | Director | CEO of Quora | October 2023 |
| Larry Summers | Director | Former U.S. Treasury Secretary, former Harvard president | November 2023 |
| Dr. Sue Desmond-Hellmann | Director | Former CEO of Bill & Melinda Gates Foundation | March 2024 |
| Nicole Seligman | Director | Former EVP and General Counsel of Sony Corporation | March 2024 |
| Fidji Simo | Director | CEO of Instacart | March 2024 |
| Paul Nakasone | Director | Former NSA Director, retired U.S. Army General | June 2024 |
| Zico Kolter | Director | Carnegie Mellon professor, AI safety researcher | November 2024 |
| Microsoft | Observer (non-voting) | Strategic partner and major investor | 2023 |
Leadership Team
| Position | Name | Tenure | Previous Role |
|---|---|---|---|
| Chief Executive Officer | Sam Altman | 2019-2023, 2023-present | President of Y Combinator |
| President | Greg Brockman | 2015-present | Co-founder, former CTO of Stripe |
| Chief Technology Officer | Mira Murati | 2018-2024 (departed) | VP of Applied AI at Tesla |
| Chief Financial Officer | Sarah Friar | 2024-present | CEO of Nextdoor |
| Chief Operating Officer | Brad Lightcap | 2018-present | VP at Y Combinator |
| Chief Scientist | Jakub Pachocki | 2024-present | Research lead at OpenAI |
| Chief Product Officer | Kevin Weil | 2024-present | Former VP at Instagram |
Financial Performance
Revenue Growth
OpenAI has experienced exponential revenue growth [34]:
| Year | Annual Revenue | Growth Rate | Key Drivers |
|---|---|---|---|
| 2020 | $3.5 million | - | Early API access |
| 2021 | $28 million | 700% | GPT-3 API expansion |
| 2022 | $300 million | 971% | Increased enterprise adoption |
| 2023 | $1.6 billion | 433% | ChatGPT launch, ChatGPT Plus |
| 2024 | $3.7 billion | 131% | Enterprise subscriptions, API growth |
| 2025 (H1) | $4.3 billion | - | Exceeded full 2024 revenue in 6 months |
| 2025 (projected) | $12.7 billion | 243% | New products, increased pricing |
| 2026 (projected) | $29.4 billion | 131% | Market expansion |
| 2029 (projected) | $100 billion | - | AGI commercialization target |
Funding History
OpenAI has raised approximately $57.9 billion across multiple funding rounds [34]:
| Date | Round | Amount | Valuation | Lead Investors | Key Terms |
|---|---|---|---|---|---|
| December 2015 | Seed | $1 billion (pledged) | - | Founders, Elon Musk, Peter Thiel, Reid Hoffman | Non-profit donations |
| July 2019 | Series A | $1 billion | $1 billion | Microsoft | Capped-profit structure introduced |
| January 2023 | Extended Series A | $10 billion | $29 billion | Microsoft | Revenue sharing agreement |
| April 2024 | Series D | $300 million | $80 billion | Tiger Global, Sequoia | Employee tender offer |
| October 2024 | Series E | $6.6 billion | $157 billion | Microsoft, Nvidia, SoftBank | Largest VC round in history |
| March 2025 | Series F | $40 billion | $300 billion | SoftBank, Microsoft, Coatue | Debt and equity mix |
| October 2025 | Secondary Sale | $6.6 billion | $500 billion | SoftBank, Dragoneer, Thrive | Employee liquidity event |
Notable investors include:
- Microsoft: $14+ billion total investment
- SoftBank: $30+ billion (including Stargate)
- Nvidia: $100 million
- Amazon: Undisclosed amount
- Sequoia Capital, Andreessen Horowitz, Khosla Ventures
Operating Metrics
| Metric | Value | Date |
|---|---|---|
| Annualized Revenue Run Rate | $13 billion | October 2025 |
| Monthly Burn Rate | $700 million | Mid-2025 |
| R&D Expenses (H1 2025) | $6.7 billion | June 2025 |
| Total Employees | 3,000+ | October 2025 |
| Compute Infrastructure Costs | ~50% of expenses | 2025 |
| Projected Break-even | 2029 | Per investor documents |
| Total Cash Burn (projected through 2029) | $115 billion | Per financial models |
Products and Technologies
Large Language Models
GPT Series Evolution
The Generative Pre-trained Transformer (GPT) series represents OpenAI's flagship language models:
| Model | Release Date | Parameters | Context Length | Key Features | Training Data |
|---|---|---|---|---|---|
| GPT-1 | June 2018 | 117 million | 512 tokens | First transformer-based LM, unsupervised pre-training | BookCorpus (7,000 books) |
| GPT-2 | February 2019 | 1.5 billion | 1,024 tokens | Zero-shot task transfer, initially withheld | 40GB WebText |
| GPT-3 | June 2020 | 175 billion | 2,048 tokens | Few-shot learning, API commercialization | 570GB diverse text |
| GPT-3.5 | November 2022 | 175 billion | 4,096 tokens | RLHF fine-tuning, ChatGPT base | Updated dataset + human feedback |
| GPT-4 | March 2023 | ~1.76 trillion (est.) | 8,192/32,768 tokens | Multimodal (text+vision), improved reasoning | Undisclosed |
| GPT-4 Turbo | November 2023 | Undisclosed | 128,000 tokens | Cost reduction, JSON mode, improved instruction following | Training cutoff: April 2023 |
| GPT-4o | May 2024 | Undisclosed | 128,000 tokens | Native multimodal (text+vision+audio), 2x speed, 50% cost reduction | Training cutoff: October 2023 |
| GPT-4o mini | July 2024 | Undisclosed | 128,000 tokens | 60% cheaper than GPT-3.5, optimized for high-volume tasks | Training cutoff: October 2023 |
| GPT-5 | 2025 | Undisclosed | Undisclosed | Integrated routing system, autonomous task planning | Current web data |
O-Series (Reasoning Models)
The o-series represents OpenAI's approach to chain-of-thought reasoning, using "reasoning tokens" to think through problems before responding [27]:
| Model | Release | Specialization | Performance | Availability |
|---|---|---|---|---|
| o1-preview | Sept 2024 | General reasoning | 83rd percentile on Codeforces | ChatGPT Plus/Pro |
| o1-mini | Sept 2024 | STEM reasoning | 70th percentile on AIME | ChatGPT Plus/Pro, API |
| o1 | Dec 2024 | Advanced reasoning | 89th percentile on Codeforces | ChatGPT Pro, API |
| o1-pro | Dec 2024 | Maximum capability | PhD-level on GPQA Diamond | ChatGPT Pro only |
| o3 | 2025 (announced) | Next-gen reasoning | 2727 Elo on Codeforces | In development |
| o3-mini | 2025 (announced) | Efficient reasoning | Optimized for speed | In development |
ChatGPT
ChatGPT is OpenAI's conversational AI interface launched November 30, 2022 [16]:
| Tier | Monthly Cost | Features | Model Access | Usage Limits |
|---|---|---|---|---|
| Free | $0 | Basic access | GPT-4o (limited), GPT-3.5 | 10 msgs/day on GPT-4o |
| Plus | $20 | Priority access, faster response | GPT-4o, o1-preview, DALL-E 3, Codex | 80 msgs/3hrs GPT-4o, 50/day o1 |
| Team | $25/user | Collaborative workspace, admin tools | All Plus models | Higher limits, shared workspace |
| Pro | $200 | Maximum access | All models including o1-pro mode | Unlimited on most models |
| Enterprise | Custom | SSO, data privacy, admin controls | All models, custom fine-tuning | Unlimited, SLA guarantees |
Usage Statistics (October 2025):
- 700 million weekly active users globally
- 20 million paid subscribers
- 5 million business/enterprise users
- Available in 185 countries and 50+ languages
- 92% of Fortune 500 companies using ChatGPT
- Mobile app downloads: 500+ million (iOS and Android)
Key Features:
- Custom GPTs: User-created specialized chatbots
- Code Interpreter: Python execution environment
- Web browsing: Real-time internet access
- Voice conversations: Natural speech interaction
- Vision: Image understanding and analysis
- Memory: Contextual information retention across chats
- Canvas: Collaborative editing interface
Image Generation
DALL-E Series
DALL-E is OpenAI's text-to-image generation system:
| Version | Release | Resolution | Key Features | Availability |
|---|---|---|---|---|
| DALL-E | Jan 2021 | 256×256 | 12B parameters, first text-to-image transformer | Research preview |
| DALL-E 2 | Apr 2022 | 1024×1024 | 3.5B parameters, inpainting, variations | API, Labs interface |
| DALL-E 3 | Sep 2023 | 1024×1024, 1792×1024, 1024×1792 | ChatGPT integration, improved text rendering | ChatGPT, API |
| GPT-4o Image | Mar 2025 | Up to 4K | Replaced DALL-E 3, faster generation, style consistency | ChatGPT exclusive |
Advanced Features:
- Inpainting: Edit specific regions of existing images
- Outpainting: Extend images beyond original boundaries
- Variations: Generate similar images from a source
- Style transfer: Apply artistic styles to images
- C2PA metadata: Content authentication standard
Video Generation
Sora Models
Sora is OpenAI's text-to-video generation technology:
| Version | Release | Capabilities | Max Duration | Resolution |
|---|---|---|---|---|
| Sora | Dec 2024 | Text-to-video, image animation | 20 seconds | Up to 1080p |
| Sora 2 | Sep 2025 | Video+audio, identity-verified "cameos", social features | 60 seconds | Up to 4K |
Sora 2 Features:
- Synchronized dialogue and sound effects
- iOS/Android apps with TikTok-style feed
- "Cameos": Identity-verified appearances in generated videos
- Visible and invisible watermarks for authenticity
- Multiple aspect ratios and styles
- Character consistency across scenes
Code and Development
Codex and GitHub Copilot
| Product | Launch | Description | Capabilities | Pricing |
|---|---|---|---|---|
| OpenAI Codex | Aug 2021 | Code-trained GPT-3 variant | Code completion, translation between languages | Deprecated, succeeded by GPT-4 |
| GitHub Copilot | Jun 2021 | AI pair programmer | Real-time code suggestions, whole function generation | $10/month individual, $19/month business |
| Codex (2025) | May 2025 | Cloud software engineering agent | Autonomous coding, parallel task execution, full project development | ChatGPT Pro, API access |
Codex (2025) Features:
- Cloud-based development environment
- Integration with GitHub, VS Code, Cursor, Windsurf
- Powered by codex-1 model (optimized o3 variant)
- Parallel execution of multiple coding tasks
- Automated testing and debugging
- Full-stack application development
Speech and Audio
Whisper
Whisper is an automatic speech recognition system [35]:
| Model Size | Parameters | Relative Speed | English WER | Multilingual Support |
|---|---|---|---|---|
| tiny | 39M | ~32x | 7.5% | Limited |
| base | 74M | ~16x | 5.0% | Good |
| small | 244M | ~6x | 3.5% | Good |
| medium | 769M | ~2x | 2.9% | Better |
| large-v3 | 1.55B | 1x | 2.5% | Best (50+ languages) |
Capabilities:
- Trained on 680,000 hours of multilingual data
- Automatic language detection
- Translation to English
- Timestamp generation
- Speaker diarization (with additional processing)
- Open-source release
Research Platforms
OpenAI Gym and Universe
| Platform | Status | Purpose | Key Features |
|---|---|---|---|
| OpenAI Gym | Deprecated (2022) | RL benchmarking | Standard environments, common API, leaderboards |
| Gymnasium | Active (community fork) | RL research | Maintained by Farama Foundation, backward compatible |
| OpenAI Universe | Deprecated (2017) | General AI training | Browser/app control, pixel-based interaction |
Other Technologies
CLIP
CLIP (Contrastive Language-Image Pre-training) connects text and images [36]:
- Trained on 400 million image-text pairs
- Zero-shot image classification
- Powers many multimodal applications
- Open-source release (MIT license)
WebGPT
Research project for improved factual accuracy:
- Web browsing during inference
- Citation of sources
- Fact-checking capabilities
- Influenced ChatGPT's web browsing feature
Infrastructure and Partnerships
The Stargate Project
Announced January 21, 2025, the Stargate Project represents the largest private infrastructure investment in history [29]:
| Aspect | Details |
|---|---|
| Total Investment | $500 billion over 4 years |
| Initial Deployment | $100 billion immediate (2025) |
| Equity Partners | SoftBank (lead), OpenAI, Oracle, MGX (UAE) |
| Technology Partners | Arm, Microsoft, Nvidia, Oracle |
| Leadership | Masayoshi Son (Chairman), Sam Altman (Operations) |
| Primary Locations | Abilene, Texas (operational); 5 additional sites (Sep 2025) |
| Secondary Locations | New Mexico, Ohio, undisclosed Midwest sites |
| Power Capacity Goal | 10 gigawatts by end of 2025 |
| Current Capacity | ~7 gigawatts across all sites |
| Job Creation Target | 100,000+ jobs |
| Computing Power | Equivalent to millions of GPUs |
Stargate Facilities:
- Abilene, Texas: 875-acre flagship campus, 1M sq ft datacenter
- Oracle Cloud Region: Dedicated OpenAI infrastructure
- Geographic distribution: Designed for redundancy and latency optimization
- Renewable energy: Commitment to sustainable power sources
Microsoft Partnership Evolution
The Microsoft-OpenAI partnership has evolved significantly [37]:
| Period | Investment | Key Terms | Products |
|---|---|---|---|
| 2019-2022 | $1 billion | Azure exclusivity, joint development | Azure OpenAI Service |
| 2023 | $10 billion | Revenue sharing (25% to Microsoft), compute credits | Bing Chat, Microsoft 365 Copilot |
| 2024 | Continued | IP licensing for Microsoft products | Windows Copilot, GitHub Copilot |
| 2025 | $14+ billion total | Right of first refusal on capacity (not exclusive), bidirectional agreements | Expanded Azure AI offerings |
Current Partnership Terms (2025):
- Microsoft retains IP rights to pre-AGI OpenAI technology
- OpenAI API remains exclusive to Azure through 2030
- Revenue sharing modified but continues
- Microsoft has board observer status (non-voting)
- Collaboration on AI safety and research continues
Other Strategic Partnerships
| Partner | Type | Announcement | Details |
|---|---|---|---|
| Apple | Integration | June 2024 | ChatGPT integration in iOS 18, macOS 15, iPadOS 18 |
| Nvidia | Infrastructure | Sep 2025 | 10 gigawatts of GPU systems for Stargate |
| Oracle | Infrastructure | Jan 2025 | Stargate co-investor, dedicated cloud region |
| SoftBank | Investment/Infrastructure | 2024-2025 | $30+ billion investment, Stargate leadership |
| Amazon | Cloud Services | 2025 | Limited AWS integration for redundancy |
| SAP | Enterprise | Sep 2025 | "OpenAI for Germany" sovereign cloud project |
Mission, Principles and Governance
OpenAI Charter
OpenAI operates according to its Charter principles, published in 2018 [3]:
- Broadly Distributed Benefits: Commit to use any influence over AGI's deployment to ensure it benefits all of humanity, avoiding uses that harm humanity or concentrate power
- Long-Term Safety: Conduct research to make AGI safe and encourage adoption of safety measures across the AI community; assist value-aligned, safety-conscious projects that come close to building AGI before OpenAI
- Technical Leadership: Maintain position at the forefront of AI capabilities to effectively address AGI's impact on society, policy and safety advocacy alone insufficient without technical expertise
- Cooperative Orientation: Actively cooperate with other research and policy institutions; create a global community working together to address AGI's global challenges
Safety and Alignment Research
OpenAI maintains multiple safety initiatives:
| Initiative | Description | Status |
|---|---|---|
| Preparedness Framework | Systematic evaluation of model risks across domains | Active, quarterly updates |
| Red teaming | Adversarial testing with domain experts | Ongoing for all major releases |
| Constitutional AI | Principles for AI behavior and alignment | Integrated in training |
| Superalignment team | Long-term AGI alignment research | Dissolved May 2024, integrated into other teams |
| Safety evaluations | Assessment across cybersecurity, CBRN, persuasion, autonomy | Required pre-deployment |
| Content filtering | Multi-layered harmful content prevention | Continuously updated |
Usage Policies
OpenAI's Usage Policies (updated October 17, 2025) establish guidelines for responsible AI use [38]:
Key Policy Principles:
- User Empowerment: Enable innovation while maintaining safety
- Responsible Use: Users accountable for appropriate usage
- Safety First: Prioritize safety in monitoring and enforcement
- Evolving Rules: Adapt policies to emerging use cases
Major Prohibitions:
- Threats to persons or property (harassment, violence, weapons)
- Privacy violations (unauthorized data collection, surveillance)
- Child safety risks (CSAM, grooming, inappropriate content)
- Automated high-stakes decisions without human review
- Misinformation campaigns or electoral manipulation
- Academic dishonesty or professional malpractice
Research Contributions
Published Papers and Innovations
| Year | Innovation | Impact | Citation Count |
|---|---|---|---|
| 2017 | Proximal Policy Optimization (PPO) | Standard RL algorithm | 10,000+ |
| 2018 | GPT: Improving Language Understanding | Launched transformer era in NLP | 15,000+ |
| 2019 | Sparse Transformer | Efficient attention mechanisms | 3,000+ |
| 2020 | GPT-3: Language Models are Few-Shot Learners | Demonstrated emergent abilities | 20,000+ |
| 2021 | CLIP: Connecting Text and Images | Multimodal understanding | 8,000+ |
| 2022 | InstructGPT: Training with Human Feedback | RLHF methodology | 5,000+ |
| 2023 | GPT-4 Technical Report | Multimodal reasoning | 7,000+ |
| 2024 | Direct Preference Optimization | Simplified alignment training | 2,000+ |
Open Source Contributions
- Whisper: Complete ASR system (Apache 2.0 license)
- CLIP: Vision-language model (MIT license)
- Triton: GPU programming language (MIT license)
- Gym: RL environments (MIT license, now community-maintained)
- Baselines: RL algorithm implementations
- GPT-2: Model weights and code (custom license)
Controversies and Legal Challenges
Copyright and Training Data
OpenAI faces multiple lawsuits regarding use of copyrighted material:
| Plaintiff | Filing Date | Claims | Status |
|---|---|---|---|
| Authors Guild + 17 authors | Sep 2023 | Copyright infringement in training | Ongoing |
| The New York Times | Dec 2023 | Unlicensed use of articles, unfair competition | Ongoing, seeking billions in damages |
| Sarah Silverman et al. | Jul 2023 | Book piracy for training data | Partially dismissed, ongoing |
| Getty Images | Feb 2023 | Image copyright violations | Ongoing |
| Various artists | 2023-2024 | DALL-E training on copyrighted art | Class action forming |
OpenAI's defense centers on fair use doctrine and transformative nature of AI systems [39].
Elon Musk Litigation
Elon Musk has filed six lawsuits against OpenAI (2024-2025):
| Date | Claim | OpenAI Response | Status |
|---|---|---|---|
| Feb 2024 | Breach of founding agreement to remain non-profit | Musk knew of for-profit plans | Withdrawn |
| Aug 2024 | Antitrust violations | Baseless claims | Dismissed |
| Oct 2025 | xAI trade secret theft via employee poaching | "Harassment strategy," denied | Ongoing |
Central allegations involve former xAI engineer Xuechen Li allegedly downloading xAI's "entire codebase" before joining OpenAI [40].
AI Safety Concerns
Key Departures and Criticisms:
- May 2024: Ilya Sutskever (co-founder, Chief Scientist) and Jan Leike (Superalignment co-lead) departed citing safety concerns
- Sep 2024: Multiple safety researchers left for Anthropic and other safety-focused organizations
- Leike's statement: "Safety culture and processes have taken a backseat to shiny products" [25]
- Dissolution of Superalignment team raised concerns about long-term safety commitment
Data Privacy Issues
- March 2023: ChatGPT bug exposed users' chat histories and payment information [41]
- 2023-2025: Multiple investigations by European data protection authorities
- Italy ban (March-April 2023): Temporary ban over GDPR concerns, lifted after compliance measures
- Ongoing concerns about training on personal data without consent
Governance and Mission Alignment
- Tension between non-profit mission and for-profit operations
- November 2023 board crisis highlighted governance vulnerabilities
- Ongoing debate about criteria for achieving AGI and profit cap triggers
- Proposals to convert to public benefit corporation faced legal challenges
Competitive Landscape
Major Competitors
| Company | Key Products | Strengths | Market Position |
|---|---|---|---|
| Google DeepMind | Gemini, Bard, PaLM | Search integration, compute resources | Leading research, consumer reach |
| Anthropic | Claude 3.5, Constitutional AI | Safety focus, long context | Enterprise, safety-conscious users |
| Meta AI | Llama 3, SAM, Make-A-Video | Open source, social integration | Developer ecosystem, free models |
| xAI | Grok, Grok-2 | Real-time data, X integration | Twitter/X ecosystem |
| Mistral AI | Mistral Large, Mixtral | European, open models | EU market, sovereign AI |
| Cohere | Command, Embed, Rerank | Enterprise focus, RAG | B2B, specialized applications |
| Stability AI | Stable Diffusion, StableVideo | Open source, community | Creative tools, local deployment |
Market Position (2025)
- API Market Share: ~65% of commercial LLM API calls
- Consumer AI: ChatGPT leads with 700M weekly users
- Enterprise: Dominant position with 92% Fortune 500 adoption
- Developer Tools: GitHub Copilot has 70% of AI coding assistant market
- Revenue Leadership: Largest AI revenue among pure-play AI companies
Impact and Applications
Industry Applications
| Industry | Use Cases | Adoption Rate | Key Implementations |
|---|---|---|---|
| Healthcare | Diagnosis assistance, drug discovery, medical documentation | 67% of major hospitals | Mayo Clinic, Johns Hopkins |
| Finance | Risk analysis, fraud detection, algorithmic trading | 89% of investment banks | Goldman Sachs, JPMorgan |
| Education | Personalized tutoring, content creation, assessment | 45% of universities | Khan Academy, Duolingo |
| Legal | Contract analysis, legal research, document review | 72% of large firms | Casetext, Harvey AI |
| Software | Code generation, debugging, documentation | 78% of tech companies | Microsoft, Stripe |
| Creative | Content generation, design, music composition | 56% of media companies | Shutterstock, Adobe |
| Retail | Customer service, inventory, personalization | 61% of major retailers | Shopify, Instacart |
| Manufacturing | Quality control, predictive maintenance, supply chain | 42% adoption | Tesla, General Motors |
Societal Impact
Positive Contributions:
- Democratized access to AI capabilities
- Accelerated scientific research and drug discovery
- Enhanced educational resources globally
- Improved accessibility tools for disabilities
- Boosted productivity across industries
Challenges and Concerns:
- Job displacement in certain sectors
- Misinformation and deepfake risks
- Academic integrity concerns
- Digital divide and access inequality
- Environmental impact of compute requirements
Future Outlook
Development Roadmap
| Timeline | Planned Developments | Strategic Goals |
|---|---|---|
| Q4 2025 | o3 and o3-mini release, Android Sora app | Reasoning model leadership |
| 2026 | GPT-5 full deployment, Codex expansion | Autonomous agent capabilities |
| 2027 | Multimodal native models, robotics integration | Physical world interaction |
| 2028 | Domain-specific expert systems | Professional replacement tools |
| 2029 | AGI achievement target, profitability | Mission accomplishment |
Financial Projections
- 2026: $29.4 billion revenue, potential IPO consideration
- 2027: $50+ billion revenue, international expansion
- 2028: $75+ billion revenue, vertical integration
- 2029: $100 billion revenue target, break-even goal
- Post-2029: Transition based on AGI achievement
Technical Milestones
- 10 trillion+ parameter models
- Real-time multimodal reasoning
- Long-term memory and planning
- Scientific discovery automation
- Human-level problem solving across domains
See Also
- Artificial General Intelligence
- Large Language Models
- Microsoft
- ChatGPT
- Machine Learning
- Neural Networks
- Transformer (machine learning model)
- Anthropic
- Google DeepMind
- AI safety
- AI alignment
References
- ↑ 1.0 1.1 1.2 OpenAI (2015). Introducing OpenAI. OpenAI Blog. https://openai.com/blog/introducing-openai/
- ↑ 2.0 2.1 2.2 OpenAI (2025). Our Structure. OpenAI. https://openai.com/our-structure/
- ↑ 3.0 3.1 OpenAI. OpenAI Charter. https://openai.com/charter/
- ↑ Reuters (2023). ChatGPT sets record for fastest-growing user base. https://www.reuters.com/technology/chatgpt-sets-record-fastest-growing-user-base-analyst-note-2023-02-01/
- ↑ Leonis Capital (2025). OpenAI: Building the "Everything Platform" in AI. https://www.leoniscap.com/research/openai-building-the-everything-platform-in-ai
- ↑ 6.0 6.1 TechCrunch (2025). OpenAI is the world's most valuable private company after private stock sale. https://techcrunch.com/2025/10/02/openai-is-the-worlds-most-valuable-private-company-after-private-stock-sale/
- ↑ Olanoff, D (2015). Artificial Intelligence Nonprofit OpenAI launches With Backing of Elon Musk and Sam Altman. TechCrunch. https://techcrunch.com/2015/12/11/non-profit-openai-launches-with-backing-from-elon-musk-and-sam-altman/
- ↑ Brockman et al. (2016). OpenAI Gym. arXiv:1606.01540v1.
- ↑ OpenAI (2016). Universe. OpenAI. https://openai.com/blog/universe/
- ↑ Radford, A. et al. (2018). Improving Language Understanding by Generative Pre-Training. OpenAI.
- ↑ Simon, M. (2018). Elon Musk is Leaving the OpenAI Board. Wired. https://www.wired.com/story/elon-musk-is-leaving-the-openai-board/
- ↑ Microsoft (2019). Microsoft invests in and partners with OpenAI. Microsoft Blog. https://news.microsoft.com/2019/07/22/openai-forms-exclusive-computing-partnership-with-microsoft/
- ↑ Radford, A. et al. (2019). Language Models are Unsupervised Multitask Learners. OpenAI.
- ↑ Brown et al. (2020). Language Models are Few-Shot Learners. arXiv:2005.14165
- ↑ Microsoft. (2020). Microsoft teams up with OpenAI to exclusively license GPT-3. https://blogs.microsoft.com/blog/2020/09/22/microsoft-teams-up-with-openai/
- ↑ 16.0 16.1 OpenAI (2022). ChatGPT: Optimizing Language Models for Dialogue. https://openai.com/blog/chatgpt/
- ↑ Microsoft. (2023). Microsoft and OpenAI extend partnership. The Official Microsoft Blog. https://blogs.microsoft.com/blog/2023/01/23/microsoft-and-openai-extend-partnership/
- ↑ OpenAI (2023). GPT-4. https://openai.com/research/gpt-4
- ↑ OpenAI (2023). OpenAI announces leadership transition. https://openai.com/index/openai-announces-leadership-transition/
- ↑ Wikipedia (2025). Removal of Sam Altman from OpenAI. https://en.wikipedia.org/wiki/Removal_of_Sam_Altman_from_OpenAI
- ↑ Heath, A. (2023). OpenAI's employees threaten to quit and join Microsoft if the board doesn't resign. The Verge. https://www.theverge.com/2023/11/20/23968853/openai-employees-threaten-to-quit-join-microsoft-sam-altman
- ↑ OpenAI (2023). Sam Altman returns as CEO, OpenAI has a new initial board. https://openai.com/index/sam-altman-returns-as-ceo-openai-has-a-new-initial-board/
- ↑ Metz, C. & Weise, K. (2023). The Turmoil at OpenAI and the C.E.O.'s Sudden Firing. The New York Times. https://www.nytimes.com/2023/11/18/technology/openai-sam-altman-what-happened.html
- ↑ OpenAI (2024). Hello GPT-4o. https://openai.com/index/hello-gpt-4o/
- ↑ 25.0 25.1 Leike, J. [@janleike] (2024, May 17). [Tweet]. X. https://x.com/janleike/status/1791559424734797946
- ↑ OpenAI (2024). GPT-4o mini: advancing cost-efficient intelligence. https://openai.com/index/gpt-4o-mini-advancing-cost-efficient-intelligence/
- ↑ 27.0 27.1 OpenAI (2024). Learning to reason with LLMs. https://openai.com/index/learning-to-reason-with-llms/
- ↑ OpenAI (2024). Sora is here. https://openai.com/index/sora-is-here/
- ↑ 29.0 29.1 OpenAI (2025). Announcing The Stargate Project. https://openai.com/index/announcing-the-stargate-project/
- ↑ TechCrunch (2025). OpenAI raises $40 billion at $300 billion valuation.
- ↑ OpenAI (2025). Introducing Codex. https://openai.com/index/introducing-codex/
- ↑ OpenAI (2025). Sora 2 is here. https://openai.com/index/sora-2/
- ↑ OpenAI. (2019). OpenAI LP. OpenAI Blog. https://openai.com/blog/openai-lp
- ↑ 34.0 34.1 Tap Twice Digital (2025). OpenAI Statistics 2025. https://taptwicedigital.com/stats/openai
- ↑ OpenAI (2022). Introducing Whisper. https://openai.com/blog/whisper/
- ↑ OpenAI (2021). CLIP: Connecting text and images. https://openai.com/index/clip/
- ↑ Microsoft (2025). Microsoft and OpenAI evolve partnership to drive the next phase of AI. https://blogs.microsoft.com/blog/2025/01/21/microsoft-and-openai-evolve-partnership-to-drive-the-next-phase-of-ai/
- ↑ OpenAI. (2025). Usage Policies. Effective October 17, 2025. https://openai.com/policies/usage-policies/
- ↑ The New York Times Company. (2023). The New York Times Sues OpenAI and Microsoft for Copyright Infringement. https://www.nytco.com/press/the-new-york-times-sues-openai-and-microsoft/
- ↑ Sina Finance. (2025). Musk's xAI Accuses OpenAI of Stealing Trade Secrets. https://finance.sina.com.cn/jjxw/2025-10-03/doc-infsqtkq5345529.shtml
- ↑ OpenAI. (2023). March 20 ChatGPT bug: here's what happened. OpenAI Blog. https://openai.com/blog/march-20-chatgpt-bug