Leaked OpenAI Financials Reveal $34 Billion Spend and Massive Annual Losses Ahead of IPO
Leaked financial documents show intense capital burn required to maintain OpenAI’s dominance in the AI sector. The company reportedly spent $34 billion in 2025 against $13 billion in revenue, resulting in significant net losses.
- Republic Business
- 2 min read
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Audited financial documents for 2025, verified by the Financial Times, reveal that OpenAI faced significant financial challenges despite surging revenue. The company reported $13.07 billion in revenue, more than triple its 2024 figures, but total costs and expenses reached $34 billion. This resulted in an operating loss of approximately $20.92 billion and a total net loss of $38.53 billion, as the firm invested heavily in research and development ahead of its anticipated 2026 public listing.
The financial data shows the extreme capital requirements of modern AI development. Research and development emerged as the largest expense, totaling $19.18 billion. Sales and marketing costs also rose to $5.73 billion, while the cost of revenue stood at $7.5 billion. A significant portion of the firm's operational costs is linked to infrastructure and compute services, with OpenAI paying roughly $17.2 billion to Microsoft for cloud and R&D support during the 2025 calendar year.
While the headline figure of a $38.53 billion net loss is substantial, the numbers include one-time accounting charges related to the company’s transition from a non-profit to a for-profit structure. The conversion triggered a $41.55 billion non-cash charge due to the fair value adjustment of convertible interests and warrant liabilities. When excluding these specific one-time accounting items and focusing on operational performance, the company's underlying loss is estimated by some analysts to be closer to $8 billion.
IPO
The disclosure comes as OpenAI moves toward a public market debut expected later in 2026. The company’s revenue growth, jumping from $3.7 billion in 2024 to $13.07 billion in 2025, indicates strong demand for its AI services. However, the audited documents emphasize the pressure on OpenAI to balance its massive R&D spending with a clear strategy for long-term sustainability as it approaches its IPO.