OpenAI, the developer of artificial intelligence models, expects to reach $70 billion in annualized revenue by the end of the year or exceed that threshold, Bloomberg reports, citing sources familiar with the matter. According to the agency, at the end of September the figure was about $50 billion. Annualized revenue allows projecting full-year revenue based on data from a shorter period. OpenAI declined to comment.
AI companies use annualized revenue as a key growth metric — including OpenAI and its main competitor Anthropic. However, calculation methods vary. In September, Axios reported a projected annual revenue for OpenAI of $70 billion. But that figure, it turned out, was based on investors' estimate using the methodology Anthropic uses. Anthropic's annualized revenue reached $65 billion by the end of July.
Reports that OpenAI's annual revenue run rate was lower than previous estimates sent technology stocks lower in US trading on October 8. Nvidia shares fell 3%, Oracle nearly 6%. Shares of non-cloud companies CoreWeave and Nebius lost almost 8% and about 7%, respectively. Shares of chipmakers AMD and Broadcom fell 4%, Intel 5%. The Nasdaq 100 technology index declined 1.4%.
OpenAI disclosed the annual revenue data to investors as part of discussions for another funding round, Bloomberg sources said. In September, the agency reported that the company was in talks to raise at least $30 billion at a valuation of $1.4 trillion excluding new investment. OpenAI last held a funding round in March, when it raised $122 billion at a valuation of $852 billion.
OpenAI plans to hold an IPO but has decided to postpone it until at least 2027, citing the need to focus on ensuring AI safety. Anthropic is expected to go public in November and is targeting a valuation of $2 trillion.
