OpenAI’s annualised revenue is approximately $20 billion less than previously signalled, according to financial documents shared with investors. The company recently indicated revenues were approaching $50 billion at the end of September, significantly lower than the $70 billion reported by media outlets based on investor information. This discrepancy stems from differing calculation methods between OpenAI and its rival Anthropic, particularly regarding revenue from cloud partners like Amazon’s AWS and Google Cloud.
The gap has raised concerns about AI demand and impacted US tech stocks, with the Nasdaq 100 falling 1.7%. Nvidia, Oracle, and Micron also saw sharp declines. As a private company, OpenAI is not required to disclose financials regularly but is in talks for a new funding round that could value it at $1.4 trillion.
The company faces intense competition from Anthropic, Meta, Google, and Chinese firms, while also dealing with legal challenges and regulatory scrutiny. OpenAI has delayed its IPO plans amid growing concerns over AI risks.
Source: Hacker News · Summarized by HeadlinesBriefing