OpenAI CEO Sam Altman recently lost his temper during a public Q&A session when questioned about his company’s modest revenue, which is reportedly less than $100 million annually despite receiving billions in funding. The incident, which took place at a tech conference in San Francisco on November 3, 2025, has raised questions about OpenAI’s growth and profitability narrative. Altman’s visible frustration underscores the scrutiny the firm is facing over its heavy reliance on enterprise deals and API usage fees, which have yet to scale significantly.
The Moment of Frustration
When a reporter asked Altman about OpenAI’s revenue shortfall, specifically mentioning the figure of under $100 million in 2024 earnings, the CEO’s response was immediate and intense. He raised his voice and retorted, “That’s not how you measure success in AI,” before abruptly ending the segment. This reaction was a stark departure from the usual composed demeanor of the CEO.
Video footage from the event captured Altman’s body language, which spoke volumes. His clenched fists and averted gaze suggested a level of discomfort and frustration that was hard to ignore. This incident has sparked a conversation about the financial health of OpenAI and the pressure it is under to deliver returns on its substantial investments.
OpenAI’s Financial Snapshot
OpenAI’s reported annual revenue of less than $100 million as of late 2024 stands in stark contrast to the company’s $157 billion valuation. The company’s key revenue streams include ChatGPT subscriptions, which are priced at $20 per month, and API access fees that start at $0.002 per 1,000 tokens. However, these sources of income have not scaled to the extent necessary to justify the company’s valuation.
OpenAI’s financial stability has been largely supported by Microsoft, which has invested over $13 billion in the company since 2019. These investments have kept the company afloat amid slow commercialization. However, the reliance on a single investor raises questions about the company’s ability to generate sustainable revenue independently.
Altman’s Leadership Under Pressure
Sam Altman has been at the helm of OpenAI since 2019. His tenure has not been without controversy, including his ousting and subsequent reinstatement in November 2023 following board conflicts over profit motives. Despite these challenges, Altman has consistently defended OpenAI’s mission. In previous interviews, he has been quoted saying, “We’re building AGI for humanity, not quarterly earnings.”
This recent incident, however, fits into a pattern of evasive responses from Altman regarding the company’s finances. Similar instances have occurred at events like the 2024 World Economic Forum, where Altman sidestepped questions about OpenAI’s financial health.
Broader AI Industry Revenue Struggles
OpenAI is not alone in its struggle to generate substantial revenue. Competitors like Anthropic also face similar challenges, with an estimated revenue of $200 million in 2024 from enterprise contracts. Investor concerns are widespread across the sector, with venture funding for AI startups dropping 20% in Q3 2025 due to doubts about profitability.
Regulatory filings reveal that OpenAI’s burn rate exceeds $7 billion annually on compute and talent costs. This high expenditure, coupled with modest revenue, paints a concerning picture of the company’s financial health and sustainability.
Reactions from Stakeholders
The incident at the tech conference has elicited reactions from various stakeholders. Tech analysts have called Altman’s outburst a “red flag” for governance issues at OpenAI. There is a growing concern that the company’s leadership may not be handling the financial pressure effectively.
Microsoft executives, however, have downplayed the revenue concerns. They have reaffirmed their commitment to invest $10 billion in OpenAI through 2027. User and employee sentiments on platforms like X have been mixed, with some criticizing OpenAI’s lack of transparency on key metrics like daily active users, which reportedly exceed 100 million.
Implications for OpenAI’s Future
The recent incident and the ensuing discussions could potentially impact OpenAI’s upcoming funding rounds. There are rumors of a $5 billion raise at a reduced valuation following the incident. This could signal a shift in investor confidence in the company’s growth and profitability prospects.
OpenAI announced a pivot to hardware partnerships in October 2025, in an attempt to diversify its revenue streams beyond software. However, the success of this strategy remains to be seen. There are also concerns about talent retention, with reports of key engineers leaving the company due to signals of financial instability.
As OpenAI navigates these challenges, the AI industry and investors will be watching closely. The company’s ability to scale its revenue and deliver on its promise of building AGI for humanity will be critical to its future success.
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