OpenAI Projects $20 Billion Jump in Annualized Revenue Before Year End

OpenAI Projects $20 Billion Jump in Annualized Revenue Before Year End

OpenAI expects its annualized revenue to reach at least $70 billion by the end of the year, up from $50 billion at the end of September, Bloomberg reported Friday (Oct. 9), citing unnamed sources.

The expected gains are being driven by growth in OpenAI’s enterprise business, according to the report.

OpenAI shared these figures with investors during discussions about a fundraising effort, the report said.

The artificial intelligence company declined Bloomberg’s invitation to comment on the claims, per the report.

Axios reported Sept. 29 that OpenAI was on pace to generate annualized revenue of almost $70 billion, a figure that would represent a 70% increase since the start of the third quarter.

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That report, which cited unnamed sources, said OpenAI’s B2B revenue had increased more than 100% over the same period, while the artificial intelligence company added more consumer revenue during the third quarter than it added during all of last year.

Bloomberg News reported Sept. 29 that OpenAI hopes to raise $30 billion in new funding and is targeting a valuation of roughly $1.4 trillion.

One source said in that report that the demand for the new round is being driven by investors as OpenAI is enjoying robust revenue growth. The report also said that the company has been in stiff competition with rival AI company Anthropic to land more enterprise customers and increase revenue before going public.

OpenAI CEO Sam Altman told Fortune Sept. 11 that the company postponed its plans to go public amid corporate concerns about AI safety. Altman said that the IPO will not take place in 2026 and that OpenAI has long insisted it is in no rush to list.

“I actually think that, given everything happening with safety, right now would be an ill-advised moment to go public, and we don’t feel pressure on that,” Altman said.

Altman added that the IPO will happen when the business is ready and when OpenAI is prepared as it related to “what the moment is like in society with this technology.”

OpenAI said June 8 that it had confidentially filed for an IPO and that it had not decided on the timing.

OpenAI was valued at $852 billion in a March funding round in which it raised $122 billion.