OpenAI projected to bring in $20bn less in revenue than expected
Summary
OpenAI now expects to make about $20 billion less in revenue this year than it previously told investors. The company projects $50 billion in revenue for 2024, down from an earlier $70 billion forecast, affecting tech stock prices and raising questions about AI market growth.Key Facts
- OpenAI's revised revenue forecast for 2024 is $50 billion, down from $70 billion reported last month.
- The $20 billion difference is partly due to how revenue is counted compared to rival company Anthropic.
- Anthropic includes revenue from cloud partners like Amazon AWS and Google Cloud; OpenAI does not.
- OpenAI is in early talks to raise $30 billion, valuing the company at about $1.4 trillion.
- OpenAI’s last funding round was $12 billion in March 2024, valuing it at $852 billion.
- Anthropic raised $6.5 billion recently, valuing it at $965 billion.
- OpenAI’s CEO Sam Altman said the company will not go public this year due to AI safety concerns.
- Politicians from both parties are calling for AI regulations amid worries about risks and rapid AI development.
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