Part of The Rogue AI Crisis · 14 stories · since Sep 22 · newest 8h ago
OpenAI's revenue signal turns murky, rattling AI stocksFT and Bloomberg dissect what the murky metric means for Wall Street
7 Oct 10 2:35 AM · 3d ago · 7 articles · 11 posts · 11 comments · 6 sources · development 7 of 7
Follow-up analysis examined how vague annualized-revenue disclosures could inflate valuations ahead of a planned IPO, while a renewed selloff in Nvidia, Oracle and CoreWeave showed the market still treating the figures as consequential.
“AI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure in Leaked Documents”
Futurism, news outlet · mastodon ↗OpenAI AI company at center of the revenue disputeFinancial Times Outlet that broke the revenue discrepancyAnthropic Rival AI lab used as revenue comparison pointNvidia Chipmaker affected by the market reaction
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What was reported 1 claim about this development
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first by Financial Times, 3d ago · also FT
What people said 18 voices · verbatim
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Both inside the Singularity, and with an AI bubble highly likely to burst. Interesting times. https:// futurism.com/future-society/ai -financial-bubble-openai-billions-failure
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Yes, because the average Joe needs to create a website. That's what missing in our lives. Let's spend 240 a year so we can create a website! Still, ignoring the above, I 've created websites at the fraction of the cost in a week with already available tools and I am just a normal guy. And I am talking about actual, functional ecommerce websites…
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OpenAI's actual annualized revenue appears to be significantly lower than the $70 billion previously reported, raising fresh questions about the AI lab's financial… #AI #OpenAI #TechNews
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When measuring the race between artificial intelligence leaders OpenAI and Anthropic, investors have run into a problem: The two private companies calculate a closely watched revenue figure differently.
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For anybody who thought AI companies were about to unlock trillions of dollars in profits, OpenAI has bad news for you: it ain’t happening anytime soon. Some red-hot reporting from the Financial Times just revealed that OpenAI’s annualized revenue — an estimated guess at a company’s income for the year — is roughly $20 billion lower than anybody…
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One useful apples-to-apples table would state the exact window and definition behind each annualized figure (for example, recognized paid revenue versus bookings or contract value), then split consumer subscriptions, API usage, and enterprise revenue. I’d keep the $70B December target as a separate scenario from the $50B September estimate in any…
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🎈 💨 # AI "OpenAI’s annualised revenue is about $20bn less than the company had signalled, according to financial documents shared with investors, a massive gap likely to damp optimism about the growth of AI demand." # tech # economy # bubble original Financial Times link (paywalled): https://www. ft.com/content/b66a9858-f8fb-4…
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There is a lot of circular financing, but this is not "empty demand". Microsoft sells compute, openai sells tokens. Yes, they are both customers of each other but Microsoft are spending that money on tokens to build and sell real software. It just so happens that Microsoft have two businesses which are in two parts of the supply chain. There is…
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https:// futurism.com/future-society/ai -financial-bubble-openai-billions-failure OpenAI’s annualized revenue — an estimated guess at a company’s income for the year — is roughly $20 billion lower than anybody had previously expected, including, it seems, OpenAI itself. # AI
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Breaking out the revenue streams would be useful. Consumer subscriptions, API usage and enterprise contracts can all grow quickly, but they tell pretty different stories about how predictable that revenue actually is. And the distinction between the $50B estimate and $70B target matters a lot when the valuation is this high. Its a pretty big jump…
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Pop? https:// futurism.com/future-society/ai -financial-bubble-openai-billions-failure
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If everyone can create a website for 20 dollars + hosting fees and domain costs, what value does a website have? You must have something that you can monetize through said website, otherwise you’re just spending money for no reason. It is a good learning tool though and does save a lot of time I would otherwise be spending doing all the research…
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Technically true, although some periods are obviously more meaningful than others. A run-rate can be useful for showing how quickly a business is growing, but it gets messy when people start treating it like actual annual revenue.
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One of the main questions is whether usage grows fast enough to offset falling prices. That's probably going to matter just as much as how many companies adopt AI in the first place.
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As a CPA as OpenAI is treating itself acting as an agent so it’s recognizing the net revenue and Anthropic treats itself as the principal so it recognizes the gross revenue amount
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Being paid for expertise doesn't necessarily lend authenticity to me, when we think about who is paying. Even Wall Street credit agencies can become ratings shops.
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I'd want customer concentration and renewal rates too; $50B from a few large contracts says something different about durability than broad, recurring spend.
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the internet required a hardware rollout though. if one of the AI labs manages to spin up an ASI, overnight we're not in Kansas anymore.
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