UK profits of ChatGPT's creator, OpenAI, significantly surge
OpenAI, the US-based technology company behind the popular AI model ChatGPT, has experienced significant growth in the UK following its launch in late 2022 and a strategic partnership with the UK government.
By the end of 2024, OpenAI UK Limited's current assets surged from £1.1 million to £56.2 million, including £42.4 million cash and £13.7 million owed by debtors. This dramatic increase was primarily due to the success of ChatGPT and the government deal, which granted OpenAI access to government data and allowed its software to be used in various sectors such as education, defence, security, and the justice system.
The company's non-current assets also rose from £178,823 to £964,495, while current liabilities increased sharply, mainly due to £39.8 million in inter-company debt not expected to be repaid to the US parent company. Despite this, shareholders’ funds increased from £875,173 to £6.2 million, and the company turned profitable, making a profit of £4.1 million in 2024, up from a loss of £1.2 million in the previous year.
The growth in OpenAI UK's financial assets was accompanied by an expansion in its workforce. The company employed 19 people at the end of 2022, but this number increased to 55 by the end of 2024, with estimates suggesting that around 100 people now work in the UK.
Peter Kyle, the UK's Technology Secretary, stated that AI will drive change and economic growth in the UK. In line with this, OpenAI confirmed that it would expand its London office as part of the agreement, aligning with the government's ambitions to integrate AI into multiple domains.
The strategic partnership between OpenAI and the UK government aims to deploy AI across public sectors, while supporting AI infrastructure and policy. This partnership will help OpenAI move beyond consumer-facing products towards enterprise and government solutions.
It's worth noting that OpenAI decided to remain under the control of a non-profit board in May 2023, abandoning plans to become a for-profit business. This decision may have contributed to the company's focus on long-term growth and collaboration with the UK government.
In conclusion, OpenAI UK Limited's launch of ChatGPT and collaboration with the UK government have substantially increased its financial assets, profits, and workforce within about two years of establishment. This growth is expected to continue as OpenAI expands its operations in the UK and collaborates further with the government to integrate AI into various public sectors.
- The financial success of OpenAI UK Limited, primarily driven by the widespread adoption of ChatGPT and the strategic partnership with the UK government, has led to a significant increase in their assets, with £56.2 million in current assets and £964,495 in non-current assets at the end of 2024.
- In addition to financial growth, OpenAI UK has seen a significant expansion of its workforce, increasing from 19 employees at the end of 2022 to 55 by the end of 2024, with estimations suggesting around 100 people now working in the UK.
- Deviating from initial plans to become a for-profit business, OpenAI UK Limited remained under the control of a non-profit board in May 2023. This decision may have contributed to the company's focus on long-term growth and collaboration with the UK government, aiming to integrate AI into various public sectors.
