AI revenue figures under scrutiny as OpenAI, Anthropic numbers diverge sharply
· Technology · Hindustan Times, The Economist
Investor confidence was rattled last week when the Financial Times reported OpenAI's revenue nearing $50 billion, while Axios reported a $70 billion figure just days earlier. Tech stocks fell following the discrepancy, with Broadcom's Hock Tan likening markets to a casino. The core issue stems from the vague and inconsistent use of ARR (Annual Recurring Revenue), where companies differ on what counts as revenue and how calculations are adjusted. Anthropic recently told investors it had $16.8 billion in Q3 revenues and claimed adjusted profitability, though growth since July's $65 billion ARR remained unclear. Until these firms list publicly, investors face a confusing interregnum where suggestive numbers shake markets.
Why it matters
Investors and market participants are directly affected as they can no longer rely on consistent financial data for AI firms, leading to heightened volatility and distrust in valuations. The lack of standardized reporting means stakeholders must navigate a maze of adjusted metrics to assess true company health.
Read the original report — Hindustan Times
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