OpenAI projected to bring in $20bn less in revenue than expected
Questions raised over AI growth as ChatGPT maker forecasts this year’s revenue at $50bn, way below the $70bn signalled before OpenAI has revealed that it is making about $20bn less in projected revenue than it had recently indicated to investors, raising questions about the break-neck growth rate in demand for AI. The ChatGPT-maker company has told investors that its revenues for this year would…
OpenAI's projected revenue for the year stands at $50bn, significantly lower than the $70bn previously indicated to investors. This deviation has raised concerns about the rapid growth rate in demand for AI technology. The discrepancy stems from differences in the way projected revenue is measured by Anthropic, OpenAI's rival, which includes sales via cloud partners, unlike OpenAI.
The revelation has impacted US tech stocks, with the tech-led Nasdaq closing down by 1.4%. Companies like Nvidia, Oracle, and Micron saw their shares decline by 2.9%, 5.5%, and 4.8%, respectively. OpenAI's CEO, Sam Altman, announced that the company would not go public this year due to safety concerns, following instances of AI agents causing security issues.
Both Democrats and Republicans are pushing for regulations on AI, as warned by Anthropic researchers about the potential extinction of humanity due to the rapid development of AI without proper safeguards. Anthropic aims to proceed with its IPO plans next month after raising $65bn last month, valuing the company at $965bn. Meanwhile, Japanese investment firm SoftBank is exploring ways to raise up to $100bn from Gulf states to fuel its AI investments, including OpenAI, which it has already invested $65bn in.
SoftBank's recent $11.1bn high-yield bond sale underscores its significant focus on AI and semiconductor assets.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
