New Delhi, Jan 4 (IANS): OpenAI achieved a significant financial milestone in 2023, crossing the $1 billion mark for the first time and reaching a remarkable $1.6 billion in revenue, a new report revealed on Thursday.

According to data obtained by Finbold, this figure represents a staggering year-over-year increase of 700 per cent, or eight times, soaring from the $200 million recorded in 2022.

"The recorded revenues highlight OpenAI's strategic consolidation of its position in the market, and its rise can be viewed as an extraordinary feat. OpenAI's substantial increase in revenue is closely tied to the success of the company's product, ChatGPT, in the generative AI landscape," the report said.

"The tool has widespread adoption across various sectors, from customer service to content creation, streamlining operations, and enhancing user experiences," it added.

In 2021, the company reported revenues totaling $34 million. Since the beginning of revenue recording, 2020 marked the lowest figure at $3.48 million, owing to the pandemic's effects.

OpenAI's initial recorded revenue was in 2016 at $13.81 million, according to the report. Moreover, the report stated that OpenAI's revenue will likely grow as the company continues to focus on enhancing natural language processing, retaining context, expanding knowledge bases, and providing customisation options.