OpenAI is embarking on an ambitious expansion plan to reach 1 billion users over the next year, a milestone that would place ChatGPT among the world’s most-used technology platforms alongside TikTok and Instagram. The AI startup’s chief financial officer Sarah Friar revealed to the Financial Times that achieving this aggressive growth target will require massive investments in infrastructure, particularly data centers.
Currently, ChatGPT serves 250 million weekly active users, representing significant growth since its launch two years ago by OpenAI CEO Sam Altman. The generative AI chatbot initially reached 100 million users in just two months after release, prompting UBS analysts to note they “cannot recall a faster ramp in a consumer internet app.”
To support a fourfold increase in users and develop more advanced AI models, OpenAI is planning substantial data center investments. Chris Lehane, vice president of global affairs at OpenAI, confirmed the company intends to build “clusters of data centers in parts of the US Midwest and southwest.” This infrastructure expansion addresses the critical computing power requirements for both training sophisticated AI models and serving hundreds of millions of users simultaneously.
The data center strategy aligns with broader industry trends, as AI companies worldwide grapple with infrastructure demands. In September, OpenAI reportedly pitched the White House on the necessity of massive data center build-outs, acknowledging the substantial power requirements involved. Altman has been in discussions with investors throughout 2024 to raise trillions of dollars for critical infrastructure development, reflecting his vision of achieving “superintelligence.”
Revenue diversification is also on OpenAI’s radar. While Friar told Business Insider the company has “no active plans to pursue advertising,” she indicated OpenAI remains “open to exploring other revenue streams in the future.” The current business model is experiencing rapid growth, but the company is considering all options as it scales.
OpenAI’s financial position strengthened significantly in October with a $6.6 billion funding round led by Thrive Capital, valuing the company at $157 billion. The capital will support frontier AI research, increase compute capacity, and develop tools for solving complex problems. Additionally, a June partnership with Apple aims to integrate ChatGPT more broadly into consumer devices, expanding the user base further.
Key Quotes
We’re in a massive growth phase, it behooves us to keep investing. We need to be on the frontier on the model front. That is expensive.
Sarah Friar, OpenAI’s chief financial officer, explained to the Financial Times why the company must continue heavy infrastructure investments to maintain its competitive position in AI development and support its ambitious user growth targets.
We cannot recall a faster ramp in a consumer internet app.
UBS analysts made this observation when ChatGPT reached 100 million users just two months after launch, highlighting the unprecedented speed of adoption for generative AI technology compared to other consumer applications.
Our current business is experiencing rapid growth and we see significant opportunities within our existing business model. While we’re open to exploring other revenue streams in the future, we have no active plans to pursue advertising.
Sarah Friar told Business Insider about OpenAI’s revenue strategy, indicating the company is focused on its current model but keeping options open as it scales to potentially 1 billion users.
Our Take
OpenAI’s billion-user ambition reveals the company’s confidence that AI has moved beyond early adoption into mass-market territory. However, the infrastructure challenges are formidable—building data centers at this scale requires years of planning, billions in capital, and navigating complex energy and regulatory landscapes. The fourfold user increase assumes continued enthusiasm for AI tools, which isn’t guaranteed as the novelty factor fades. More critically, OpenAI’s consideration of advertising suggests subscription revenue alone may not sustain the massive infrastructure costs, potentially changing the user experience and raising privacy concerns. This aggressive expansion also intensifies competitive pressure on rivals like Google and Anthropic, likely accelerating the broader AI arms race. The partnership with Apple provides a distribution advantage, but converting casual users into engaged daily users at billion-person scale remains unproven territory for AI applications.
Why This Matters
This announcement signals a pivotal moment in AI’s mainstream adoption, as OpenAI attempts to scale from a cutting-edge technology company to a ubiquitous platform rivaling social media giants. Reaching 1 billion users would represent unprecedented penetration for an AI application, fundamentally changing how people interact with artificial intelligence daily.
The infrastructure implications are enormous. OpenAI’s data center plans highlight the physical constraints facing AI expansion—massive computing power and energy requirements that will reshape regional economies and energy grids. This infrastructure race affects not just OpenAI but the entire tech industry, as companies compete for limited resources including chips, power, and real estate.
For businesses, OpenAI’s growth trajectory suggests AI tools will become as commonplace as search engines or social media, requiring companies to integrate these capabilities or risk competitive disadvantage. The potential exploration of advertising models could democratize access while changing AI’s business economics. This expansion also raises important questions about AI governance, data privacy, and the concentration of AI capabilities in few companies, making OpenAI’s growth a bellwether for the industry’s future direction.
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Source: https://www.businessinsider.com/openai-users-billion-data-centers-chatgpt-2024-12