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OpenAI revenue reportedly near $50B, $20B below projection

Original title: OpenAI’s revenue is reportedly $20 billion less than previously projected

Plain language

What it is: OpenAI reportedly told investors that its annualized revenue is approaching 50 billion dollars. This is 20 billion dollars less than the 70 billion dollars previously reported by news outlets.
How it works: The previous higher figure came from investors trying to compare OpenAI directly with Anthropic. The two companies calculate their revenues differently, as Anthropic includes sales made by its cloud partners while OpenAI does not.
Where it is available: This applies to OpenAI's financial reports and communications with its investors.
Example: Not stated in the source

What it is: OpenAI has reportedly adjusted its projected annualized revenue to around 50 billion dollars, down from a previous estimate of 70 billion dollars. This adjustment impacts how investors view the company's financial performance and its upcoming IPO timeline.
How it works: The discrepancy occurred because investors attempted to compare OpenAI's revenue directly with Anthropic's run rate. Anthropic includes cloud partner sales in its calculations, whereas OpenAI does not count these sales.
Where it is available: This applies to OpenAI's corporate financial metrics and investor relations.
Example: Not stated in the source

The headline and explanation on this page are based on TechCrunch's post. The full details are in the original.

OpenAI’s revenue is reportedly $20 billion less than previously projected