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What is OpenAI – History, Projects Complete Guide



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Along with ChatGPT, Open AI, its parent company, is one of the hottest topics on the internet. Open AI has taken the AI world to the next level by providing various incredible AI tools.

Many people are curious to learn about Open AI’s products, establishment, founders, pricing, etc. If you are among them, this post is for you! This comprehensive guide shares in-depth details regarding Open AI, its history, projects, funding, owners, etc. So, wait until the end to get all your answers regarding Open AI!

what is openai

What is OpenAI?

Open AI is an Artificial Intelligence (AI) research center and laboratory based in San Fransisco, USA. The company was founded in 2015 by Elon Musk, Sam Altman, Ilya Sutskever, Greg Brockman, Trevor Blackwell, Wojciech Zaremba, and Andrej Karpathy as a non-profit organization.

The goal behind Open AI’s establishment is to ensure that artificial general intelligence (AGI) benefits human beings. The company has launched several products, of which ChatGPT, DALL-E, and DALL-E 2 have gained immense popularity.

Open AI was founded with an initial investment of $1 billion. However, the company is anticipated to make a $200 million profit by the end of 2023.

How does OpenAI work

Open AI researches generative AI models and aligns them with human values. The company conducts AI research to develop friendly AI models. Open AI runs its systems on the Microsoft Azure supercomputing platform.

Open AI deeply understands the benefits and risks of every model before launching it to ensure the product is safe for humans. This mantra has enabled Open AI to successfully launch several AI tools that automate text generation, audio processing and generation, and image generation.

OpenAI income

Open AI is among the leading artificial intelligence companies. The company was launched with an initial investment of $1 billion in 2015 as a non-profit organization. In 2019, the company became a for-profit organization with a profit capped at 100 times more than its initial investment.

In 2019, the company partnered with Microsoft and announced an initial investment of $1 billion for the first year. In 2022, Open AI made a profit of $30 million. The company aims to generate a revenue of $200 million by the end of 2023 and $1 billion by 2024. However, the exact Open AI revenue will only be known after the company reveals it.

Openai revenue
Openai revenue
Openai valuation
Openai valuation
Openai profits till 2020
Openai profits till 2020

Open AI stats

Open AI was the dream project of Sam Altman and Elon Musk. These intellectuals founded the company to use artificial intelligence in video games and other apps. However, the company soon switched to developing AI products using reinforcement learning and launched its first AI product in 2016.

Currently, Open AI owns several AI products and runs a for-profit organization. In the following sections, we will uncover more details regarding Open AI’s history and establishment. 

Openai statistics by demographic
Openai statistics by demographic


Openai numbers of employees
Openai numbers of employees


Openai users by age
Openai users by age

Timeline and History of OpenAI

Timeline and History of OpenAI

  • Open AI was established in 2015 by Elon Musk, Sam Altman, Ilya Sutskever, Greg Brockman, Trevor Blackwell, Wojciech Zaremba, Andrej Karpathy, with Reid Hoffman, Jessica Livingston, Peter Thiel, John Schulman, and Pamela Vagata as initial board members.
  • In 2016, Open AI paid corporate-level salaries, which were lower than those paid to AI researchers at Facebook and Google.
  • The company released Open AI Gym in 2016, a platform for reinforcement learning, followed by Universe in December 2016.
  • In 2017, Open AI reported that it spent $7.9 million only on cloud computing.
  • In 2018, Elon Musk stepped down from his position as a CEO, saying that it was raising a conflict of interest between Elon Musk’s Open AI and Tesla companies.
  • In 2019, Microsoft invested in Open AI and became one of the key investors in Open AI with an investment of $1 billion. The company also turned into a for-profit organization this year.
  • In 2020, Open AI launched a language model GPT-3 that can conversationally interact with humans and generate text.
  • In 2021, the company rolled out DALL-E, a digital image generation model that can create images using the textual input given by its users.
  • 2022 marks the most incredible invention by Open AI, ChatGPT. It is an AI text-generation tool that interacts with humans using natural language processing. The model is powered by GPT-3.5.
  • In March 2023, Open AI released its latest language model, GPT-4.
  • The company also received a $10 billion investment from Microsoft in January 2023.

    Notable OpenAI projects and releases:

    Open AI has launched several projects since its establishment in 2015. Some of its noteworthy projects include the following:


    GPT-3 was launched in 2020. The language model is trained on a large dataset to answer questions, translate text, and improvise text. The model also has its API, which allows developers to integrate its functionalities into other platforms.


    GPT-4 was launched in mid-March 2023 as an advanced version of GPT-3. It is a multimodal model that takes images and texts as inputs and generates textual output. The model is accessible via ChatGPT Plus. It is also integrated into various applications like Microsoft Bing, Khan Academy, Duolingo, Be My Eyes, Github Copilot, Stripe, and Auto-GPT.

    DALL-E and DALL-E 2

    DALL-E and DALL-E 2 are AI-based image generators. They take user textual input and process it to generate relevant images using AI. The platforms use 12 billion GPT-3 parameters to generate images from the textual content.


    CLIP (Contrastive Language–Image Pre-training) is a neural network that learns visual concepts using natural language supervision. It is a multimodal AI that uses artificial intelligence to synthesize images and text associated with the image to generate the most appropriate captions.


    ChatGPT is an AI-based chatbot that interacts with its users using natural language processing. The platform is not limited to generating essays or completing texts. It can also generate poems, music lyrics, recipes, codes, etc. You can also use ChatGPT to debug computer programs. ChatGPT is one of the most successful Open AI inventions, with a user base of 100 million users within five months of its release.


    Codex is built with Open AI’s GPT-3 language model. The platform parses natural language to produce appropriate codes in response. It was trained using millions of code lines to simplify programming. Software developers widely use it, and it also powers Github Copilot.


    Whisper is an automated Speech Recognition platform developed by Open AI in September 2022. it is trained with 680,000 hours of multilinguistic and supervised data from the web. It can generate accurate transcriptions for content or translate speech from one language to another. Whisper is trained using a large dataset, enabling it to make 50% fewer mistakes than other speech recognition models.

    OpenAI and Microsoft

    Open AI partnered with Microsoft in 2019 when the company funded $10 billion for Open AI’s research projects. Open AI reported that since its partnership with Microsoft, the company had used Microsoft Azure cloud computing within its products. Read this guide to know more about who owns openai stock.

    In January 2023, Microsoft announced it would fund Open AI with $29 billion for its upcoming projects. The company has also expressed interest in Open AI’s products. It has integrated GPT-4 functionalities into its Bing Search Engine and plans to add it to other Microsoft Office products. 

    Criticisms of OpenAI

    Open AI has gained immense popularity but isn’t void of criticism. The platform has received mixed opinions regarding its AI products, including ChatGPT. After the launch of ChatGPT, people have questioned Open AI’s reliability regarding data transparency and user privacy. Some also believe that Open AI is stealing users’ information without their consent and may use it for its benefit in the future.

    Open AI has been accused of launching ChatGPT with hallucination issues. It also produces plagiarized content, which may lead to serious issues for its users.

    The future of OpenAI

    Open AI’s end goal is to produce generative AI to benefit humans. The company doesn’t seem to set back without achieving this goal. The company is also anticipated to launch GPT-5, a newer model in the GPT series, in the coming years.

    Open AI constantly develops new AI tools and projects to simplify human lives. Several investors are also interested in funding the company to assist in its projects. According to some reports, Open AI will reach $1 billion in profit by 2024. So, let’s see how far the company goes with its upcoming products.

    How to Get Started with OpenAI’s ChatGPT

    Open AI’s ChatGPT was released in 2022. It is powered by GPT-3.5 and GPT-4. However, users can access GPT-4 only after purchasing the ChatGPT Plus subscription worth $20 per month. You can use ChatGPT by visiting its official website (

    You must sign up for a new account using your username, password, email address, and contact number. It will ask for your payment details to purchase the Plus plan. But you can skip this step if you want to use ChatGPT for free.

    After creating your ChatGPT account, you can start using it by writing a prompt in the text bar. ChatGPT will then generate relevant responses to your questions and provide feedback for the generated content.


    Who is the CEO of OpenAI?

    Currently, Sam Altman is the CEO of Open AI. Earlier, Elon Musk was the CEO and co-founder of Open AI, but he resigned from his position in 2018.

    Can I use OpenAI for free?

    You can use Open AI for free. Most of its products have a free version for users to explore the platform and its functionalities. However, you may have to purchase a subscription plan to access the advanced features of some Open AI products.

    How much is OpenAI worth?

    According to Theinformation, Open AI’s valuation was worth $20 million in 2022 with a funding of $1 billion.

    Which is better, OpenAI or DeepMind?

    DeepMind uses a far better research algorithm and processes to produce AI tools. On the other hand, Open AI uses reinforcement learning to train its models. So, several users say that DeepMind is better than Open AI since it produces accurate results.

    Does Elon Musk still own OpenAI?

    Elon Musk quit Open AI in 2018. He no longer owns Open AI or its shares.

    Was OpenAI founded by Elon Musk?

    Yes, Elon Musk is the founder of Open AI. He co-founded Open AI along with Sam Altman in 2015.

    Why did Elon leave OpenAI?

    Elon Musk felt that Open AI was causing a conflict between Tesla and his SpaceX mission. So, he left Open AI in 2018 to focus entirely on Tesla and SpaceX.

    What Is ChatGPT Plus?

    ChatGPT Plus is the subscription-based version of ChatGPT. The plan offers additional features for premium users, including exclusive access to GPT-4. You can get it for $20 monthly.

    Is OpenAI owned by Microsoft?

    Microsoft doesn’t own Open AI. However, Microsoft is among the major investors in Open AI after investing $1 billion in 2019.

    How much did Microsoft pay for OpenAI?

    Microsoft hasn’t bought Open AI. The company has reportedly invested billions of dollars in Open AI. Its recent investment was $29 million in January 2023.

    What programming language does OpenAI use?

    Open AI is a company that develops Artificial Intelligence products using machine learning and deep learning techniques. It uses various programming languages to train these models. These languages include Swift, Go, Ruby, JavaScript, Shell, and Python.

    What company owns OpenAI?

    Open AI is not owned by any other company. It is the parent company of other products like ChatGPT, Whisper, Codex, DALL-E, etc.

    Is OpenAI a company?

    Yes, Open AI is a company. It is headquartered in San Fransisco, where it conducts AI research in its laboratory. 

    When was OpenAI founded?

    Open AI was founded on December 10, 2015.

    Is OpenAI owned by Google?

    No. Open AI and Google are separate companies. None of the companies own the other.

    What is the purpose of OpenAI?

    Open AI conducts AI research to develop AI platforms that can help humanity. It has successfully launched various AI tools and plans to launch many more.

    Who was OpenAI founded by?

    Open AI was founded by Elon Musk, Sam Altman, Ilya Sutskever, Greg Brockman, Trevor Blackwell, Wojciech Zaremba, and Andrej Karpathy.

    Is OpenAI a startup?

    Open AI was a startup in 2015. Currently, it is a for-profit organization making billions of dollars as revenue.

    Who are the big players in AI right now?

    Several tech companies are stepping into the AI world to develop helpful AI products. The leading companies in this field include Open AI, SalesForce, Alibaba, Google, Microsoft, IBM Cloud, Apple, Amazon, Nvidia Corp, etc.

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