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[BUSINESS] · United States · 25 sources

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OpenAI projects $50 billion in annualized revenue amid funding talks

OpenAI has informed investors that its annualized revenue is expected to be approximately $50 billion, a significant decrease from previous estimates of nearly $70 billion. This discrepancy is largely attributed to accounting differences; while competitors like Anthropic include gross revenue from cloud partners in their totals, OpenAI reports only its net share.

Despite the lower revenue projection, OpenAI is reportedly seeking an additional $30 billion in funding at a valuation of roughly $1.4 trillion. The company is also navigating intense infrastructure spending requirements, with partners like Oracle managing massive computing contracts to support AI growth.

Market reactions to the revenue news were volatile, causing temporary declines in tech-heavy indices like the Nasdaq and affecting major chipmakers. Additionally, CEO Sam Altman has indicated that the company will delay its initial public offering (IPO) until at least after 2026, citing concerns regarding AI safety.

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Anthropic · Bloomberg · Broadcom · Financial Times · Nasdaq · Nvidia · OpenAI · Oracle · Sam Altman · SoftBank · Vanity Fair

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