OpenAI expects its annualized revenue to reach or exceed $70 billion by the end of 2026, driven largely by growing demand for its enterprise products and artificial intelligence services, according to people familiar with the matter. The ChatGPT developer generated approximately $50 billion in annualized revenue at the end of September, highlighting its rapid business expansion.
Annualized revenue estimates a company’s yearly sales based on its performance over a shorter period. OpenAI shared these projections with investors during discussions surrounding its latest fundraising plans, according to people familiar with the confidential information.
OpenAI Seeks $30 Billion in New Funding
OpenAI is reportedly in discussions to raise at least $30 billion at a pre-money valuation of $1.4 trillion. Bloomberg first reported the fundraising discussions in September. The company declined to comment on its revenue projections or the latest financing plans.
The company has increasingly relied on its enterprise business to support revenue growth as organisations adopt AI tools for productivity, automation and other business applications.
However, differences in how AI companies calculate annualized revenue have complicated comparisons between competitors. Anthropic, another major AI developer, reportedly reached $65 billion in annualized revenue by the end of July, according to an earlier Bloomberg report.
Recent media reports suggested that OpenAI was already forecasting annualized revenue approaching $70 billion. The Financial Times reported that discrepancies in these estimates stemmed from investors applying different calculation methods, particularly regarding revenue generated through cloud providers.
Revenue Estimates Put AI Stocks Under Pressure
Questions surrounding OpenAI’s revenue projections affected technology stocks on Thursday. Reports suggesting that the company’s annualized revenue could be lower than some earlier estimates contributed to losses across the technology sector.
The Nasdaq 100 declined 1.4%, while an index tracking major semiconductor companies fell 3.4%. The developments highlighted how closely investors are monitoring the financial performance of leading AI businesses amid substantial spending on computing infrastructure and technology development.
IPO Plans and Investor Interest
OpenAI has postponed plans for an initial public offering until at least 2027, citing a focus on AI safety initiatives. Anthropic, meanwhile, is reportedly considering a potential stock market listing as early as November.
OpenAI is also in talks with several investment funds from the United Arab Emirates, including Abu Dhabi-based MGX, to help anchor its latest funding round.
In March, the company raised $122 billion at a valuation of $852 billion, including the new investment. Its latest fundraising ambitions underscore investors’ continued interest in the commercial potential of artificial intelligence.
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