OpenAI’s revenue run rate nears US$50 billion, less than reported

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Photo by Heather Diehl/Getty ImagesOpenAI is on track to generate annualized revenue of roughly US$50 billion based on its current performance, according to people familiar with the matter, an uptick from the prior year but less than some recently reported estimates for the ChatGPT maker.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountSome outlets reported last month that OpenAI was already on track to generate nearly US$70 billion in annualized revenue.This advertisement has not loaded yet, but your article continues below.The Financial Times earlier reported the new financial estimate. The discrepancy is due to attempts by OpenAI’s investors to more directly compare its figures to rival Anthropic PBC, including how it accounts for sales through cloud providers, the newspaper said, citing a person familiar with the matter.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againOpenAI did not respond to a request for comment.OpenAI, Anthropic and other AI firms have often touted their annualized revenue — a projection of annual sales based on a shorter period — as a key growth metric. However, not all companies measure it the same way. Anthropic’s annualized revenue hit US$65 billion by the end of July, Bloomberg News previously reported.OpenAI is locked in a fierce battle with Anthropic to sign up more business customers. Both firms have filed confidential paperwork to go public, with Anthropic expected to IPO as soon as this fall. OpenAI has said it no longer expects to IPO this year, as it focuses on addressing safety concerns from its technology.The ChatGPT maker is currently in discussions with investors to raise US$30 billion or more in a funding round that would value the firm at about US$1.4 trillion, Bloomberg News has reported.OpenAI was previously on pace for more than US$40 billion in annualized revenue, Bloomberg News reported in August. The company has seen an acceleration in sales as businesses embrace its newer models and coding tools.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.