OpenAI expects US$70bn in annualized revenue

OpenAI is expecting to reach or exceed US$70 billion in annualized revenue by the end of the year, according to people familiar with the matter, driven largely by growth in its enterprise business.

The ChatGPT maker’s annualized revenue was roughly US$50 billion at the end of last month, the people said. The figure represents a projection of OpenAI’s yearly sales based on a shorter period.

The company shared the numbers with investors as part of discussions for its latest fundraising effort, said the people, requesting anonymity to discuss private information.

A keyboard is placed in front of a displayed OpenAI logo in an illustration image taken on Feb. 21, 2023.

Photo: Reuters

The company is in talks to raise US$30 billion or more at a US$1.4 trillion valuation before the new money, Bloomberg first reported last month.

OpenAI declined to comment.

OpenAI, Anthropic and other AI firms have often touted their annualized revenue as a key growth metric. However, not all companies measure it the same way. Anthropic’s annualized revenue hit US$65 billion by the end of July, Bloomberg News previously reported.

Some outlets reported last month that OpenAI was already projecting nearly US$70 billion in annualized revenue, based on investor estimates.

The Financial Times reported on Thursday that the discrepancy came from OpenAI’s investors attempting to calculate OpenAI’s annualized revenue using the same methods as rival Anthropic PBC, which accounts for sales from cloud providers differently.

On Thursday, tech shares led losses in the S&P 500 after reports that OpenAI’s annualized revenue would be lower than some previous estimates. The NASDAQ 100 fell 1.4 percent. A gauge of chip giants sank 3.4 percent.

While OpenAI has pushed back plans for an initial public offering until at least next year, citing its focus on AI safety efforts, Anthropic is expected to sell shares in an IPO as soon as next month.

OpenAI is in talks with multiple investment funds from the United Arab Emirates, including Abu Dhabi-based MGX, to help anchor its new financing round, Bloomberg has reported.

The company most recently raised a US$122 billion round in March at an US$852 billion valuation, including the money.