OpenAI UK Ltd reported revenues of £293 million for 2025 and a net profit of £20.3 million after tax. At the same time, the parent group OpenAI continued to burn large sums: according to figures reported by the Financial Times, in 2025 OpenAI generated $13 billion in revenue but spent about $34 billion, leaving an operating loss of roughly $8 billion after excluding non‑cash items.
Why the apparent contradiction exists
The primary reason the London unit reports profit is an intra‑group cost‑plus billing arrangement. Under this model the UK company provides research, development and other services to the US parent; the parent reimburses the actual costs and pays a predetermined profit margin on top. In practice, that means money flows from the parent to the UK entity to cover London’s spending plus an additional margin, so the UK books revenue and profit that originate within the group rather than from direct UK end customers.
Because of that accounting and transfer‑pricing structure, OpenAI UK can be profitable even while the overall OpenAI group records substantial losses.
High personnel costs and rapid expansion in London
The UK accounts show total personnel costs of £258 million for 110 employees in the year, an average of £2.3 million per employee. That average, however, masks the composition of the costs: of the £258 million, £87.4 million was cash salary and wages, £167.8 million was recorded as share‑based compensation, and about £2.8 million consisted of pension contributions and other benefits.
The average is pulled up by highly compensated researchers and engineers, who often receive large, equity‑heavy packages in the competition for top AI talent. The London operation has grown quickly: average headcount rose from 55 to 110 in a single year, and R&D spending increased from £48.2 million to £117.8 million.
Group financials and future outlook
While the UK subsidiary’s books show a profit, OpenAI as a whole remains heavily invested and loss‑making. The 2025 group figures indicate $13 billion of revenue against about $34 billion of spending. OpenAI’s own forecasts suggest that between 2026 and 2030 the group could generate up to $278 billion of negative free cash flow as it invests hundreds of billions of dollars in compute capacity and infrastructure.
In short, the profit reported in London mainly reflects the group’s internal billing model and the rapid build‑out of the UK operation, not that OpenAI’s global AI business is already broadly profitable. The UK numbers highlight significant local spending and high compensation packages, while group‑level expenditures and projected cash‑flow deficits remain substantial.
