OpenAI annualised revenue nears $50 billion, $20 billion below earlier reported figure
In short
OpenAI recently told investors its annualised revenue was approaching $50 billion as of the end of September, according to the Financial Times and CNN as cited by South Korean outlets. That is $20 billion (about 26.88 trillion won), or 29%, below the $70 billion figure reported earlier. AI chip and cloud stocks fell on the news, the outlets reported.
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OpenAI recently told investors that its annualised revenue was approaching $50 billion as of the end of September, the Financial Times and CNN reported on October 8 local time, according to Yonhap, Maeil Business and Seoul Economic Daily. The figure is $20 billion (about 26.88 trillion won) less than the $70 billion that had been reported earlier, a gap of 29%. [ 1 , 2 , 3 ]
Media reports had earlier put OpenAI's annualised revenue at $40 billion as of July. After OpenAI said its revenue had grown by more than 70% since July, the figure rose to $70 billion. OpenAI did not deny the $70 billion figure when reports of it circulated, the outlets said. [ 1 , 2 , 3 ]
The outlets also reported an explanation that OpenAI had not falsely inflated its figures. A source said information shared with investors while comparing OpenAI's results with those of rival Anthropic appears to have been misconstrued. When Anthropic provides AI services through cloud providers, it counts the full amount paid by users as revenue and books the fees paid to cloud companies as costs. OpenAI counts as revenue only the portion of sales through partners that comes back to it. In adjusting for this difference to compare the two side by side, the $40 billion July figure was shared among investors, and the $70 billion figure appears to have grown from it, Yonhap and Seoul Economic Daily reported. Seoul Economic Daily said the more than 70% growth rate was simply applied to the $40 billion figure. [ 1 , 2 , 3 ]
AI chip and cloud-related stocks fell that day, Yonhap and Seoul Economic Daily reported, while Maeil Business said related tech stocks wobbled across the board. Ross Mayfield, an investment strategist at Baird, said that if the AI demand narrative cracks because of factors such as OpenAI's revenue being lower than expected, the effects could spread across the entire AI supply chain, and that the news would clearly have a large impact on the AI industry as a whole. Seoul Economic Daily said the market reaction reflected concern that the investment case across the AI supply chain, from chips to data centres and cloud, could be shaken if the leading AI company's revenue growth falls short of expectations. [ 1 , 2 , 3 ]
OpenAI is a private company and does not regularly disclose its financial condition. For OpenAI, which is working to attract new investment, annualised revenue is one of the important indicators, the outlets said. [ 1 , 2 , 3 ]
Why it matters
Annualised revenue is a key indicator for OpenAI, which is private, does not regularly disclose its finances and is seeking new investment. Baird investment strategist Ross Mayfield said a crack in the AI demand narrative could affect the entire AI supply chain.
Key facts
- OpenAI recently told investors its annualised revenue was approaching $50 billion as of the end of September, according to the Financial Times and CNN. [ 1 , 2 , 3 ]
- The figure is $20 billion (about 26.88 trillion won) less than the $70 billion previously reported, 29% lower. [ 1 , 2 , 3 ]
- Earlier media reports put OpenAI's annualised revenue at $40 billion as of July; after OpenAI said revenue had grown more than 70% since July, the figure rose to $70 billion. [ 1 , 2 , 3 ]
- OpenAI did not deny the $70 billion figure when it was reported. [ 1 , 2 , 3 ]
- Anthropic books the full amount users pay as revenue when it provides AI services through cloud providers and records cloud fees as costs; OpenAI books only the amount it receives from sales through partners. [ 1 , 2 , 3 ]
- AI chip and cloud-related stocks fell that day. [ 1 , 3 ]
- OpenAI is a private company and does not regularly disclose its financial condition. [ 1 , 2 , 3 ]
Confirmed by several sources
- OpenAI told investors its annualised revenue was approaching $50 billion as of the end of September, according to the Financial Times and CNN. [ 1 , 2 , 3 ]
- The figure is $20 billion, or 29%, below the $70 billion reported earlier. [ 1 , 2 , 3 ]
- OpenAI did not deny the earlier $70 billion figure. [ 1 , 2 , 3 ]
- OpenAI and Anthropic account differently for revenue earned through partners and cloud providers. [ 1 , 2 , 3 ]
- Baird investment strategist Ross Mayfield said the news would have a large impact on the AI industry as a whole. [ 1 , 2 , 3 ]
- AI chip and cloud-related stocks fell that day. [ 1 , 3 ]
Still unclear
- Who gave the explanation that the gap stems from accounting differences with Anthropic. Yonhap and Seoul Economic Daily attribute it to an unnamed source, while a commentary section in Maeil Business describes it as OpenAI's own explanation.
- How far AI chip and cloud stocks fell and which companies were affected. The documents give no index levels, share prices or company names for the decline.
- Whether OpenAI has publicly commented on the gap. The documents cite only what OpenAI told investors and its earlier non-denial, not a public statement on the revised figure.
What local media are saying
Timeline, local time
- Yonhap reports that OpenAI's annualised revenue is $20 billion below the figure previously reported. [ 1 ]
- Maeil Business reports on the revenue gap and the wobble in tech stocks. [ 2 ]
- Seoul Economic Daily reports OpenAI's annualised revenue is near $50 billion and details the accounting differences with Anthropic. [ 3 ]