OpenAI’s annualised revenue US$20 billion less than previously signalled: Report
It is far short of the US$70 billion reported by media outlets.
OpenAI's annualized revenue is estimated to be roughly $20 billion (S$25.6 billion) lower than initially reported, according to a Financial Times report published on October 8. The news outlet cited financial documents shared with investors, though Reuters could not independently verify the claim. OpenAI had previously stated to investors that its revenue was approaching $50 billion on an annualized basis as of the end of September, significantly less than the $70 billion previously reported by media outlets, including Reuters, in late September.
The discrepancy stemmed from attempts by OpenAI's investors to make a direct comparison with Anthropic's annualized revenue, as reported by the Financial Times, citing an insider with knowledge of the matter. Both companies calculate the figure differently, with Anthropic including revenue from sales via cloud partners like AWS and Google Cloud, while OpenAI does not.
Annualized revenue run rate, despite being a popular metric among fast-growing Silicon Valley startups, can often be misleading as it involves multiplying one month's revenue by 12. OpenAI and its rival Anthropic are reportedly preparing to go public, which could provide Wall Street with a clearer view of their finances, including the sustainability of their rapid revenue growth driven by the AI boom.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
