OpenAI tells investors annualised revenue near $50bn, about $20bn below reported figure
In short
OpenAI disclosed to investors at the end of September that its annualised revenue was approaching $50 billion, about $20 billion less than the nearly $70 billion figure reported by media at the end of last month, Chinese outlets reported on October 9. People familiar with the matter said the gap arose because OpenAI's investors tried to compare its revenue directly with that of rival Anthropic.
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OpenAI disclosed to investors at the end of September that its annualised revenue was approaching $50 billion, according to financial documents shared with investors, CLS reported on October 9. The figure is about $20 billion below the nearly $70 billion annualised revenue reported by media at the end of last month. 36Kr carried the same report, and Yicai also reported that OpenAI's annualised revenue was $20 billion below earlier reported expectations. [ 1 , 3 , 4 ]
CLS said the figure represented substantial growth from a year earlier. People familiar with the matter said the earlier discrepancy arose because OpenAI's own investors tried to compare its revenue directly with Anthropic's annualised revenue. IT Home, citing the Financial Times, said media had estimated the $70 billion figure from data previously provided to investors, and that the two companies use different accounting bases: Anthropic includes revenue generated through sales by cloud partners such as Amazon Web Services (AWS) and Google Cloud, while OpenAI's figure excludes this partner revenue. [ 1 , 2 , 3 ]
IT Home reported that US technology stocks fell after the Financial Times published its report, with the Nasdaq 100 index closing down 1.4%. Nvidia closed down 2.9%, Oracle fell 5.5% and Micron fell 4.8%, according to IT Home. The outlet described OpenAI's annualised revenue, and Anthropic's comparable figure, as the most important gauge of overall global demand for AI and a core support for large investments in computing infrastructure and for gains in secondary stock markets. [ 2 ]
CLS reported that OpenAI is competing intensely with its long-time rival Anthropic for enterprise customers. Both companies have submitted confidential IPO filings, CLS said, with Anthropic expected to complete its IPO as early as this autumn. OpenAI has said it no longer plans to complete an IPO this year because of its current focus on resolving technology safety issues, according to CLS. [ 1 ]
Why it matters
IT Home described OpenAI's annualised revenue, and Anthropic's equivalent figure, as a key indicator of global demand for AI and a core support for large computing infrastructure investment and stock market gains. IT Home reported that US technology stocks fell after the Financial Times report. CLS linked the figures to the two companies' competition for enterprise customers and their planned stock market listings.
Key facts
- OpenAI disclosed to investors at the end of September that its annualised revenue was approaching $50 billion. [ 1 , 2 , 3 ]
- The figure is about $20 billion below the nearly $70 billion annualised revenue reported by media last month. [ 1 , 2 , 3 , 4 ]
- People familiar with the matter said the discrepancy came from investors trying to compare OpenAI's annualised revenue directly with Anthropic's. [ 1 , 2 , 3 ]
- According to IT Home, Anthropic counts revenue from sales through cloud partners such as AWS and Google Cloud, while OpenAI excludes such revenue. [ 2 ]
- IT Home reported that the Nasdaq 100 closed down 1.4% after the Financial Times report, with Nvidia down 2.9%, Oracle down 5.5% and Micron down 4.8%. [ 2 ]
- CLS reported that both OpenAI and Anthropic have submitted confidential IPO filings, and that OpenAI has said it no longer plans to complete an IPO this year. [ 1 ]
Confirmed by several sources
- OpenAI told investors at the end of September that its annualised revenue was approaching $50 billion. [ 1 , 2 , 3 ]
- The figure is about $20 billion below the roughly $70 billion reported by media last month. [ 1 , 2 , 3 , 4 ]
- People familiar with the matter attributed the discrepancy to investors comparing OpenAI's revenue directly with Anthropic's. [ 1 , 2 , 3 ]
Still unclear
- Whether Anthropic and OpenAI count cloud-partner revenue differently. Only IT Home, citing the Financial Times, describes the difference in accounting bases.
- The size of the US stock market reaction. Only IT Home reports the Nasdaq 100 and individual share moves.
- OpenAI's and Anthropic's IPO timing. Only CLS reports the confidential filings, Anthropic's expected autumn IPO and OpenAI's decision not to list this year.
What local media are saying
Timeline, local time
- CLS reports that OpenAI's annualised revenue is about $20 billion below the figure reported last month. [ 1 ]
- IT Home reports the figures citing the Financial Times, adding the accounting difference and US market reaction. [ 2 ]
- 36Kr carries the CLS report. [ 3 ]
- Yicai reports the $20 billion shortfall. [ 4 ]