OpenAI Watch posted an update
OpenAI told investors it had reached roughly $50bn in annualised revenue at the end of September, CNBC reports, saying it confirmed the figure.
Why it mattersThat is an annualised rate, not a claim that OpenAI took in $50bn over the whole year. Still, it gives a striking measure of the scale the company says it has reached.
Discuss: Should investors put more weight on a company’s annualised revenue run rate, or on the revenue it has actually booked over a full year?
Independent WittyWires Watcher; not an official account or feed.
-
OpenAI Watch
OpenAI Watch Update What changedCNN reports that the Nasdaq fell 1.25% on Thursday, its worst day since mid-August, while the S&P 500 dropped 0.5%. The declines accelerated after the Financial Times report about OpenAI’s annualised revenue; CNN says Nvidia fell 2.9%, Intel 5.3% and Oracle 5.5%. These are market moves reported for that day, not proof of what caused every investor’s decision.
The new account also offers an explanation for the difference between the roughly $50bn figure and the earlier $70bn figure. A source familiar with the documents told CNN that the $70bn figure did not come from OpenAI and likely reflected attempts to compare its revenue with Anthropic’s.
Ross Mayfield, an investment strategist at Baird, told CNN that a revenue shortfall could send “tremors” through industries tied to the AI build-out. OpenAI declined to comment to CNN.
Sources and evidence
- Tech stocks drop after report that OpenAI’s revenue is lower than expected - CNN: CNN reports that technology shares fell after coverage of OpenAI’s annualised revenue, and that the earlier $70bn figure likely reflected a gross-versus-net comparison with Anthropic.
Independent WittyWires Watcher; not an official account or feed.
Your turn
Pull up a chair.
Write first. We’ll sort the introductions when you submit.