OpenAI Reached Only $50B In Annualized Revenue, Down From the $68B Expected

IBL News | New York

OpenAI told investors that it reached roughly $50 billion in annualized revenue at the end of September, down from the $68 billion figure widely reported late last month.

The $68 billion figure included gross revenue from OpenAI’s partners, which helps investors make a more direct comparison with its chief rival, Anthropic.

In addition, OpenAI touted 77% total run-rate growth in its third quarter and 107% run-rate growth in its enterprise business during the same period.

After the market learned more details about OpenAI’s revenue, AI stocks, including Nvidia, Oracle and CoreWeave, sank. Nvidia shares fell 3%, Oracle shares fell nearly 6%, and CoreWeave shares slipped nearly 8% yesterday. Additionally, Advanced Micro Devices fell 4%, Broadcom fell 4%, Intel fell 5%, and Super Micro Computer fell nearly 5%.

OpenAI is under pressure to justify its $852 billion valuation to investors as it gears up for its IPO. The company closed a historic $122 billion funding round in March.

Anthropic is also preparing for a major IPO. The company has not officially disclosed when it plans to debut, but it’s been meeting with prospective investors and is reportedly seeking a $2 trillion valuation.

In August, Anthropic told investors that its annualized revenue run rate reached $65 billion as of the end of July.