SAN FRANCISCO, Jan 20, 2026, 04:02 PST
- OpenAI’s CFO revealed that annualized revenue soared past $20 billion in 2025, a jump from $6 billion the year before.
- Apple is integrating Google’s Gemini models into a revamped Siri set to launch later this year, ramping up the competition for rivals
- As AI expenses rise, ads and new devices are becoming the latest areas of competition
OpenAI Chief Financial Officer Sarah Friar revealed the company’s annualized revenue — based on current sales run-rate — topped $20 billion in 2025, up sharply from $6 billion the previous year. This growth coincided with computing capacity jumping from 0.6 gigawatts to 1.9 gigawatts. Friar added that OpenAI’s 2026 priorities will center on “practical adoption,” with a focus on health, science, and enterprise sectors.
The revenue surge is crucial as the AI boom shifts into a costly battle over distribution. Model creators require funding for chips and data centers, plus prime spots on phones and browsers to hold onto users.
That shift has refocused attention on Apple, which commands a massive consumer base. After a rocky rollout of its own generative AI features last week, the company decided to increase its dependence on external AI providers.
Apple is set to power a revamped Siri with Google’s Gemini models, according to Reuters. The multi-year deal hands Google access to over two billion active devices worldwide. “Apple’s decision to use Google’s Gemini models for Siri shifts OpenAI into a more supporting role,” said Parth Talsania, CEO of Equisights Research. Tesla CEO Elon Musk chimed in too, calling it “an unreasonable concentration of power” for Google.
Apple and Google announced in a joint statement that Apple’s next generation of Foundation Models will leverage Google’s Gemini models and cloud infrastructure. Apple Intelligence, however, will keep operating on devices and through Apple’s “Private Cloud Compute,” their privacy-centered cloud processing system.
Apple still uses OpenAI’s ChatGPT in Siri for opt-in, complex questions, Reuters says. But with Gemini, Google now has the edge for everyday assistant tasks.
Google has started integrating Gemini into more consumer platforms, like Samsung’s “Galaxy AI,” Reuters reported. The Apple deal expands that footprint just as major tech companies race to embed AI into phones and subscription services.
OpenAI, with Microsoft’s backing, is ramping up efforts to boost revenue. Last week, it announced plans to roll out ads in ChatGPT for some users in the U.S.—a significant move for a company that’s relied mostly on paid subscriptions and enterprise deals until now.
Risks remain. The Apple-Google pact might invite new regulatory attention, given their existing, long-standing search partnership. Deals around AI distribution could become the next battleground for platform control. On the product front, Apple has yet to deliver a promised Siri revamp that’s faced delays, and neither firm revealed the financial details involved.
Friar told Reuters that OpenAI’s upcoming push centers on “agents” — AI systems built to execute tasks nonstop and interact with various tools. He also emphasized maintaining a “light” balance sheet by opting to partner instead of fully owning infrastructure. For context, a gigawatt is commonly used to roughly gauge data center scale in terms of power capacity.
Axios reported that OpenAI plans to launch its first device in the latter half of 2026, Reuters noted. This move adds fresh competition as companies like Google and Musk’s xAI intensify their efforts in consumer hardware and services.
