OpenAI’s annualized revenue is approximately $20 billion lower than previously indicated to investors, according to newly shared financial documents. This significant revision is likely to temper investor enthusiasm surrounding the growth prospects of artificial intelligence demand.
At the end of September, OpenAI reported to investors that its annualized revenue was nearing $50 billion, a substantial decrease from the $70 billion figure reported by various media outlets last month based on earlier investor communications. The annualized revenue metric, alongside a similar figure from Anthropic—OpenAI’s leading competitor—is considered a crucial gauge of overall AI demand, influencing infrastructure investment and public equity valuations.
Following earlier reports, U.S. technology stocks experienced sharp declines, with the Nasdaq 100 index falling 1.7 percent. Prominent technology firms connected to AI infrastructure also saw notable losses, including Nvidia down 2.9 percent, Oracle nearly 6 percent, and Micro around 4 percent.
The discrepancy in revenue figures stems from differences in how OpenAI and Anthropic calculate annualized revenues. Anthropic includes revenue generated through cloud service partners such as Amazon Web Services and Google Cloud, while OpenAI excludes these sales. Attempts by OpenAI’s own investors to adjust the company’s reported revenue to align more closely with Anthropic’s methodology led to initial estimates of about $40 billion in July. At that time, OpenAI later indicated that its annualized revenues had increased by over 70 percent since July, contributing to the higher $70 billion estimate in September—a figure the company did not explicitly confirm but did not dispute either.
The updated investor presentation, however, reveals that OpenAI’s annualized revenues were closer to $30 billion in July, suggesting more modest growth than previously thought. As a private company, OpenAI is not obligated to regularly disclose detailed financial information and declined to comment on the figures.
OpenAI is currently engaged in discussions for a new private funding round that could value the company at approximately $1.4 trillion. Annualized revenue plays a central role in investor assessments of the company’s outlook and its competitive position relative to Anthropic.
Despite the downward revision, the $50 billion annualized revenue reported for September still reflects rapid expansion since mid-year. Nevertheless, the gap between expectations and reported figures raises concerns about the trajectory of large, privately held AI firms that influence the broader U.S. technology market and contribute to economic growth.
OpenAI continues to invest heavily—on the order of hundreds of billions of dollars—in computing power and infrastructure, fueled by revenue from its AI products as well as substantial backing from technology giants including Nvidia, Microsoft, and Amazon. The company faces intense competition from rivals such as Anthropic, Meta, Google, and smaller Chinese AI developers.
The firm had filed a prospectus for an initial public offering (IPO) in June and was anticipated to go public during the autumn. However, these plans have been delayed amid heightened concerns regarding the implications of advanced AI technologies. CEO Sam Altman has stated that the company will not move hastily towards an IPO, reflecting a cautious approach amid evolving market dynamics.