Business · Markets · 1 hr ago
OpenAI’s annualised revenue is reported at $50 billion, not $70 billion
OpenAI, the artificial intelligence company led by Sam Altman, was reported to have annualised revenue of about $50 billion at the end of September.
That figure estimates what the company would earn in a year if its recent sales continued at the same pace.
A $70 billion figure had circulated earlier, and OpenAI told Bloomberg it aims to reach that level by the end of the year.
The news coincided with a roughly 1.5% drop in the Nasdaq and losses for several companies that supply technology infrastructure.
The figures are hard to compare because companies calculate annualised revenue differently.
Anthropic, a competitor, includes spending by customers who use its products through Amazon and Google cloud services, although those partners keep a share; OpenAI’s calculation reportedly leaves out Microsoft Azure’s share.
Investors use these figures to judge how quickly AI companies are growing, while a public listing would give outsiders a clearer view of OpenAI’s finances.
OpenAI’s annualised revenue was reported at about $50 billion at the end of September, rather than the $70 billion previously reported.
People familiar with the matter said OpenAI aims to reach an annualised revenue of $70 billion by the end of the year.
The Financial Times report of the $50 billion figure was followed by a roughly 1.5% fall in the Nasdaq.
Shares in Micron, Oracle, Broadcom and Nvidia fell between 2% and more than 5%.
The article says the difference may reflect the use of different ways to calculate annualised revenue.
- Who
- OpenAI, the artificial intelligence company led by Sam Altman.
- What
- Its annualised revenue was reported at about $50 billion, while the company aims to reach $70 billion by year-end.
- When
- The $50 billion figure was reported on a Thursday; the article says it was the figure at the end of September.
- Where
- Not stated.
- Why
- The discrepancy may reflect different calculation methods for annualised revenue.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
OpenAI’s annualised revenue stood at around $50 billion, according to people familiar with the matter cited by Bloomberg.
The Financial Times reported the $50 billion figure, after which the Nasdaq fell by around 1.5%.
People familiar with the matter told Bloomberg that OpenAI aims to reach annualised revenue of $70 billion by year-end.
- Annualised revenue at end of September
- About $50 billion
- OpenAI’s year-end target
- $70 billion annualised revenue
- Nasdaq movement
- Down around 1.5% after the Financial Times report
- Affected companies
- Micron, Oracle, Broadcom and Nvidia
- Earlier reported figure
- $70 billion
Sources
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