Exclusive: OpenAI Spent $34 Billion In 2025, With Losses Up 8X

Summary

Better Offline – Exclusive: OpenAI Spent $34 Billion In 2025, With Losses Up 8X

Podcast: Better Offline
Host: Ed Zitron (Cool Zone Media and iHeartPodcasts)
Date: June 16, 2026

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Episode Overview

In this exclusive episode, host Ed Zitron dives deep into the newly revealed and independently verified audited financial documents of OpenAI, covering the years 2024 and 2025. The episode sheds light on the staggering scale of OpenAI's financial losses, an unprecedented escalation in spending, and the shifting structure of the company. Zitron adopts an intentionally restrained and factual tone, opting to let the numbers “speak for themselves” given the gravity of the revelations.

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Key Discussion Points & Insights

1. OpenAI’s Financial Losses: 2024–2025

• 2024 Financials

  • Revenue: $3.7 billion
  • Costs and Expenses: $12.4 billion
  • Net loss attributable to OpenAI: $5.09 billion
  • Cost of Revenue: $2.65 billion
  • R&D Costs: $7.81 billion
  • Zitron notes technical uncertainty in how terms like “net loss attributable to non-controlling members capital” are defined but mentions a reported net loss of $8.84 billion.
  • After accounting for special losses, final net loss: $5.09 billion (01:04)

• 2025 Financials

  • Losses attributable to the company: ~$38.5 billion
  • Revenue: $13.07 billion
  • Cost of Revenue: $7.5 billion
  • R&D Costs: $19.18 billion
  • 2025 is marked by OpenAI’s conversion from a nonprofit to a for-profit entity, triggering a $41.55 billion loss due to changes in the fair value of convertible interest and warrant liability.
  • Final net loss: $60.35 billion
  • Net loss adjusted downward to $38.53 billion via accounting lines relating to non-controlling members and another undefined category (“Redee”).
  • Zitron repeatedly notes that several financial terms are undefined in the documents and adds, “I have nothing else to add there.” (02:47)

2. Major Revenue Sources in 2025

• SoftBank: $867 million
• Microsoft: $303 million
• Zitron makes a point of highlighting these as the major disclosed sources. (03:34)

3. Unprecedented Scale and Industry Context

• The losses are described as “astronomical” and “far higher than most believed it would be.”
• Losses grew nearly 800% year-over-year from 2024 to 2025.
• Zitron frames this as a fundamental threat to OpenAI’s long-term sustainability and profitability, acknowledging that the path forward is unclear.
  • “I’m not sure how this company finds a way toward any kind of sustainability or profitability.” (03:54)

4. Reporting Approach & Editorial Philosophy

• Zitron states he is intentionally minimizing personal commentary:
  • “Due to the seriousness of this story, I’m not going to do very much editorializing. I’m going to keep things straight laced as the numbers speak for themselves…” (00:53)
• Intends to publish a more detailed analysis in a future newsletter and podcast episode after thoroughly reviewing the documents.

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Notable Quotes & Memorable Moments

• “I can exclusively report, based on audited financial documents … that OpenAI lost around $38.5 billion in 2025, growing said losses by nearly 800% year over year.”

  • Ed Zitron (00:46)

• “In the end, OpenAI is left with a net loss of $60.35 billion, which it lowered to $38.53 billion by removing $17.87 billion in costs via that net loss attributable to non-controlling members capital line and another $3.95 billion via a net loss attributable to Redee. It’s unclear what these terms mean.”

  • Ed Zitron (02:38)

• “The financial condition of OpenAI is deeply concerning. $38.5 billion in losses … are astronomical and are far higher than most believed it would be and indeed are very different to those that have been previously reported.”

  • Ed Zitron (04:03)

• “Losses also appear to be mounting year over year at a dramatic rate and I’m not sure how this company finds a way toward any kind of sustainability or profitability.”

  • Ed Zitron (04:18)

• “I have, as mentioned, saved the editorializing today. Not going to do it. I need more time. I believe the best thing I can do for the general public is to deliver this news as plainly as possible. More to come. Zitron out.”

  • Ed Zitron (04:28)

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Important Timestamps

• 00:37 – 01:35: Zitron announces the exclusive findings and sets editorial tone
• 01:35 – 02:15: Detailed breakdown of 2024 numbers
• 02:15 – 03:07: Deep dive into 2025’s financials and conversion to for-profit status
• 03:34: Key revenue sources (SoftBank, Microsoft) for 2025
• 03:54 – 04:28: Zitron’s assessment of the short- and long-term implications

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Episode Tone and Final Thoughts

Zitron delivers the information with a sense of urgency and gravity, deliberately withholding in-depth commentary until further review. The episode is designed as a factual and direct accounting—“serious news plainly delivered”—aimed both at industry insiders and the concerned public. Further analysis and investigation are promised in upcoming content as more is learned from the detailed documents.

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For a deeper dive on the financial terminologies and implications, listeners are directed to the companion newsletter referenced in the show notes.

Transcript

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Media I'm Ed Zitron. This is better offline and I've seen OpenAI's audited financials for 2024 and 2025 play the goddamn music Matt. Today I can exclusively report based on audited financial docum this podcast that have been independently verified by the financial times that OpenAI lost around $38.5 billion in 2025, growing said losses by nearly 800% year over year, as well as other crucial details about the financial condition of this company. Due to the seriousness of this story, I'm not going to do very much editorializing. I'm going to keep things straight laced as the numbers speak for themselves and well, I want to come up with better jokes. But no, seriously folks, we've got to take this one seriously. I'm serious. I'm also going to somewhat punt on giving every single number here. You can find the companion newsletter in the show Notes which goes into much more detail, but I want to give you the top line and let you know that I intend to do more with this. But I had to get this out when I had to get it out and there were, by the way, no situations where I was trying to delay this. This went out the second I could. Let's start with 2024. OpenAI had $3.7 billion in revenue, $12.4 billion in costs and expenses, and a net loss attributable to OpenAI of $5.09 billion. Its cost of revenue was $2.65 billion and its R&D costs were $7.81 billion. I do not have a breakdown of how these terms are defined technically. OpenAI was left with an $8.84 billion loss at the end of 2024, but it then marked $3.74 billion of losses as net loss attributable to non controlling members capital, leaving the net loss attributable to the company, as I mentioned at $5.09 billion. I won't speculate as to what that means now. In 2025, OpenAI had around $38.5 billion in losses attributable to the company. Its revenue was $13.07 billion, its cost of revenue was $7.5 billion and its R&D was $19.18 billion. Please note that 2025 was also the year that OpenAI converted from a nonprofit to a for profit entity, leading to a $41.55 billion loss due to changes in the fair value of convertible interest and warrant liability. In the end, OpenAI is left with a net loss of $60.35 billion, which it lowered to $38.53 billion by removing $17.87 billion in costs via that net loss attributable to non controlling Members Capital line and another $3.95 billion via a net loss attributable to Redee. It's unclear what these terms mean. They are not defined and I have nothing else to add there. In 2025, $867 million of OpenAI's revenue was from SoftBank and $303 million was from Microsoft. I intend to follow up this story in the next month with more in depth reporting related to the documents. They're detailed and I need time to fully pass them. Once I've done so, you'll know I will say that the financial condition of OpenAI is deeply concerning. $38.5 billion in losses are around there, are astronomical and are far higher than most believed it would be and indeed are very different to those that have been previously reported. Losses also appear to be mounting year over year at a dramatic rate and I'm not sure how this company finds a way toward any kind of sustainability or profitability. I have, as mentioned, saved the editorializing today. Not going to do it. I need more time. I believe the best thing can do for the general public is to deliver this news as plainly as possible. More to Come Zitron out.

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