OpenAI Targets $70 Billion Revenue by Year End

OpenAI expects its annualized revenue to reach or exceed $70 billion by the end of the year, driven largely by enterprise business growth, according to people familiar with the matter. The company shared the projection with investors during fundraising discussions.

According to people familiar with the matter, OpenAI's annualized revenue was about $50 billion at the end of September. The figure estimates yearly sales based on a shorter period rather than completed annual results.

Bloomberg reported that OpenAI is seeking to raise $30 billion or more at a $1.4 trillion valuation before the new funding. The company declined to comment on the revenue figures or fundraising discussions.

The company has used annualized revenue as a growth measure alongside other artificial intelligence firms, including Anthropic. Bloomberg previously reported that Anthropic's annualized revenue reached $65 billion by the end of July.

OpenAI investors have attempted to estimate the company's annualized revenue using methods similar to Anthropic's calculations, according to the Financial Times report cited by Bloomberg. Differences in how cloud provider sales are counted contributed to varying estimates.

Technology stocks fell after reports that OpenAI's annualized revenue could be lower than some previous estimates. Bloomberg reported that the Nasdaq 100 declined 1.4%, while a gauge of major chip companies fell 3.4%.

OpenAI has delayed plans for an initial public offering until at least next year while focusing on AI safety efforts, according to Bloomberg. Anthropic is expected to pursue a share sale as soon as November.

Bloomberg reported that OpenAI is in discussions with multiple investment funds from the United Arab Emirates, including Abu Dhabi-based MGX, to help anchor its latest financing round. The company most recently raised $122 billion in March at an $852 billion valuation, including the money.