OpenAI told investors that it achieved roughly $50 billion in annualized revenue at the end of September, according to CNBC, substantially lower than the $68 billion figure widely reported the previous month.
According to a person familiar with the matter, the $68 billion figure included gross revenue from OpenAI’s partners, which the company said helps investors make a more direct comparison with its chief rival, Anthropic. The Financial Times first reported the $50 billion figure.
OpenAI shared the updated financial details in an investor presentation. Beyond the annualized revenue figure, the company highlighted 77% total run rate growth during its third quarter, as well as 107% run rate growth for its enterprise business during the same period.
The disclosure triggered a sharp sell-off in AI-related stocks on Thursday. Nvidia shares fell 3%, Oracle shares dropped nearly 6%, and CoreWeave shares slipped nearly 8%. Advanced Micro Devices, Broadcom, Intel, and Super Micro Computer also declined, falling 4%, 4%, 5%, and nearly 5% respectively.
OpenAI is under pressure to justify its $852 billion valuation ahead of an expected initial public offering. The company confidentially filed its prospectus with regulators in June, with executives signaling a 2027 IPO target. CEO Sam Altman said in September that “right now would be an ill-advised moment to go public,” citing ongoing concerns around AI safety.
Meanwhile, OpenAI is engaging in early-stage discussions with investors about a potential new funding round that could raise around $30 billion, though that figure could change. The company closed a historic $122 billion funding round in March. CFO Sarah Friar told CNBC last week that the company remains “very well capitalized.”
Anthropist, OpenAI’s chief rival, is also preparing for a major IPO and is reportedly seeking a $2 trillion valuation. In August, Anthropic told investors its annualized revenue run rate hit $65 billion at the end of July.
Key facts
- OpenAI’s annualized revenue was $50 billion at the end of September, not the $68 billion previously reported
- The $68 billion figure included gross revenue from OpenAI’s partners
- OpenAI reported 77% total run rate growth in Q3 and 107% run rate growth for enterprise business in the same period
- The revenue disclosure caused significant declines in AI-related stocks, including Nvidia (down 3%), Oracle (down nearly 6%), and CoreWeave (down nearly 8%)
- OpenAI is targeting a 2027 IPO debut and is in early discussions about raising approximately $30 billion in new funding