According to Bloomberg’s sources, the ChatGPT developer OpenAI had annualized revenue of roughly $50 billion at the end of September, not $70 billion as some earlier reports implied. Bloomberg also reported that OpenAI expects to reach at least a $70 billion annualized revenue run rate by year-end.
Annualized revenue projects how much revenue a company would generate over a full year based on performance in a specific period. AI companies often use this metric to illustrate rapid growth, but accounting methods and the bases for calculation can differ between firms, which can create confusion.
Why estimates differ
Bloomberg said part of the discrepancy stems from investors trying to make OpenAI’s numbers comparable with those of Anthropic, the company behind the Claude model. The two firms account differently for sales made through cloud providers, so their annualized figures are not directly comparable. Bloomberg previously reported that Anthropic’s annualized revenue reached about $65 billion by the end of July.
Market reaction and questions about returns on AI investment
The uncertainty showed up in markets: on Thursday the Nasdaq 100 fell 1.4 percent, while an index tracking major chipmakers lost 3.4 percent. Investors are particularly concerned about the pace at which the very large investments flowing into AI will be converted into sustained revenue.
U.S. technology giants including Microsoft, Oracle, Meta, Amazon and Google are spending massive sums on data centers and AI infrastructure, but investment pace does not always match revenue growth. Bloomberg’s report notes an example of such spending in Europe: an €8 million data center being built in Transylvania.
Fundraising, valuation and competition
Bloomberg also reported that OpenAI is seeking at least $30 billion in fresh capital. In investor discussions the company is being valued at about $1,400 billion ($1.4 trillion), a substantial increase from a March valuation of $852 billion. In March the company had raised $122 billion. Reportedly, some talks involve sovereign and large institutional investors in the United Arab Emirates, including Abu Dhabi’s MGX.
OpenAI’s chief rival in the space is Anthropic, and both companies are competing for corporate customers. Anthropic could go public as early as November, making its shares available to public investors, while OpenAI’s IPO is not expected until next year at the earliest.
Bloomberg’s questions to OpenAI went unanswered.
