Zon Media. I'm d Zetron. This is better offline and I've seen open ayes audited financial so twenty twenty four
and twenty twenty five play the goddamn music maps. Today I can exclusively report, based on audit did financial documents view by this podcast that have been independently verified by the Financial Times, the Open Aye lost around thirty eight point five billion dollars in twenty twenty five, growing said losses by nearly eight hundred percent year of a year, as well as other crucial details about the financial condition of this company. Due to the seriousness of this story,
I'm not going to do very much editorializing. I'm going to keep things straight laced, as the numbers speak for themselves, and well, I want to come up with better jokes, but no, seriously, folks, who've got to take this one seriously. I'm serious. I'm also going to somewhat punt on giving every single number here. You can find the companion newsletter in the show notes, which goes into much more detail. But I want to give you the top line and let you know that I intend to do more with this.
But I had to get this out when I had to get it out, and there were, by the way, no situations where I was trying to delay this. This went out the second I could. Let's start with twenty twenty four, open Ai had three point seven billion dollars in revenue, twelve point four billion dollars in costs and expenses, and a net loss attributable to open Ai of five point h nine billion dollars. Its cost of revenue was two point six five billion dollars and its R and
D costs was seven point eight one billion dollars. I do not have a breakdown of how these terms are defined. Technically, open ai was left with an eight point eight four billion dollar loss at the end of twenty twenty four, but it then marked three point seven four billion dollars of losses as net loss attributable to non controlling members capital, leaving the net loss tributable to the company, as I mentioned, at five point oh nine billion dollars. Speculate as to
what that means now. In twenty twenty five, open ai had around thirty eight point five billion dollars in losses attributable to the company. Its revenue was thirteen point zero seven billion dollars, its cost of revenue was seven point five billion dollars, and its R and D was nineteen
point one eight billion dollars. Please note that twenty twenty five was also the year that open ai converted from a nonprofitable for profit entity, leading to a forty one point five to five billion dollar loss due to changes in the fair value of convertible interest and warrant liability. In the end, open ai is left with a net loss of sixty point three five billion dollars, which it lowered.
The thirty eight point five three billion dollars are removing seventeen point eight seven billion dollars in costs via that net loss attributable to non controlling members capital line, and another three point nine five billion dollars via a net loss attributable to redeeming non controlling interests. It's unclear what these terms mean. They are not defined, and I have
nothing else to add there. In twenty twenty five, eight hundred and sixty seven million dollars of open AI's revenue was from soft Bank and three hundred and three million dollars was from Microsoft. I intend to follow up this story in the next month with more in depth reporting related to the documents. They're detailed, and I need time to fully pass them. Once I've done so, you'll know. I will say that the financial condition of open Ai
is deeply concerning. Thirty eight point five billion dollars in losses are around there. Are astronomical and are far higher than most believed it would be, and indeed are very different to those that have been previously reported. Losses also appear to be mounting year of a year at a dramatic rate, and I'm not sure how this company finds a way toward any kind of sustainability of profitability. I have, as mentioned, save the editorializing today, not going to do it.
I need more time. I believe the best thing I can do for the general public is to deliver this news as plainly as possible. More to come Zitro now