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  • Hacker News
  • The headline should've been "OpenAI annualised revenues $20B less than previously signalled by us". The FT is just reporting high number to create a story, then a low number to create another story.
    by underyx
  • The crash of AI hype will be absolutely beautiful. Sure my 401K will probably tank, but this is honestly not the first time. Have plenty of assets not tied to stock market plus plenty of cash.

    Although, I suppose that saying, "the market can remain irrational longer than you can be solvent", is more true than ever.

    by xyst
  • Do you know who is not surprised by this? Ed Zitron, and anyone who has read his articles or anyone who have looked into these companies at any level deeper than "AI do cool things! AI must be good investment! AI must make much money!"
    by Refreeze5224
  • Does this align with what Zitron was complaining about? Or is it a broken-clock-right-twice-a-day thing? neutral question.
    by FLeXMurphy
  • > OpenAI is under pressure to justify its $852 billion valuation to investors as it gears up for what is widely expected to be a blockbuster IPO. OpenAI confidentially filed its prospectus with regulators in June, and executives have signaled that the company is eyeing a 2027 debut.

    > Anthropic is also readying for a major IPO. The company has not officially disclosed when it plans to debut, but it’s been engaging in meetings with prospective investors and is reportedly seeking a $2 trillion valuation. In August, Anthropic told investors that its annualized revenue run rate hit $65 billion at the end of July.

    Is 15 billion annualized (30% more) supposed to justify the $1 trillion+ difference between the two valuations sought in any event? Or are Anthropic's numbers better because of margins or something?

    by piker
  • What’s it called when you misstate revenue while also taking money from investors?
    by digitaltrees
  • Gift link: https://giftarticle.ft.com/giftarticle/actions/redeem/f77156...

    Apparently they overstated revenue in an attempt to try to provide a direct comparison with Anthropic's reported metrics.

    From the article: "According to a person with knowledge of the matter, the discrepancy arose from attempts by OpenAI’s own investors to produce a direct comparison with Anthropic’s annualised revenues. The pair calculate the figure in different ways, with Anthropic including the revenue from sales via cloud partners such as AWS and Google Cloud, while OpenAI does not. Efforts to “gross up” OpenAI’s annualised revenue led to reports that the group’s annualised revenue had hit $40bn in August. The company has since told investors its revenues have grown more than 70 per cent, leading to the $70bn figure"

    **sorry the gift link can only be viewed 3 times..

    by virtuosarmo
  • This is an interesting shift compared to the past where OpenAI would’ve been public a long time ago (due to various regulations) so we would have much more direct insight.

    Right now we have a ~$1 trillion company which a ton of the “economy” and valuations are based on, with near zero information on how it’s doing.

    by wepple

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