CapitalUnited States
loomberg’s Ed Ludlow breaks down OpenAI's latest annualized revenue, expected to reach or exceed $70 billion by the end of the year. Plus, Oracle keeps several data centers on track by relying on truck deliveries of natural gas, and a conversation with Kleiner Perkins partner…
OpenAI is expecting to reach or exceed US$70 billion in annualized revenue by the end of the year, according to people familiar with the matter, driven largely by growth in its enterprise business.
The ChatGPT maker’s annualized revenue was roughly US$50 billion at the end of last month, the people said. The figure represents a projection of OpenAI’s yearly sales based on a shorter period.
The company shared the numbers with investors as part of discussions for its latest fundraising effort, said the people, requesting anonymity to discuss private information.
The company is in talks to raise US$30 billion or more at a US$1.4 trillion valuation before the new money, Bloomberg first reported last month.
OpenAI, Anthropic and other AI firms have often touted their annualized revenue as a key growth metric. However, not all companies measure it the same way. Anthropic’s annualized revenue hit US$65 billion by the end of July, Bloomberg News previously reported.
Some outlets reported last month that OpenAI was already projecting nearly US$70 billion in annualized revenue, based on investor estimates.
The Financial Times reported on Thursday that the discrepancy came from OpenAI’s investors attempting to calculate OpenAI’s annualized revenue using the same methods as rival Anthropic PBC, which accounts for sales from cloud providers differently.
On Thursday, tech shares led losses in the S&P 500 after reports that OpenAI’s annualized revenue would be lower than some previous estimates. The NASDAQ 100 fell 1.4 percent. A gauge of chip giants sank 3.4 percent.
While OpenAI has pushed back plans for an initial public offering until at least next year, citing its focus on AI safety efforts, Anthropic is expected to sell shares in an IPO as soon as next month.
OpenAI is in talks with multiple investment funds from the United Arab Emirates, including Abu Dhabi-based MGX, to help anchor its new financing round, Bloomberg has reported.
The company most recently raised a US$122 billion round in March at an US$852 billion valuation, including the money.
Bankers in Hong Kong skipped the summer break as an artificial intelligence (AI)-fueled rush for capital sent share sales to a record, defying a bruising selloff in the city’s stocks. Initial public offerings (IPOs), placements and block trades raised US$47.5 billion in July to last month, the biggest haul ever for the period, data compiled by Bloomberg showed. That pushed fundraising this year above US$92 billion and within reach of the US$112.5 billion record set in 2021. AI has been at the heart of Hong Kong’s deal revival, but this summer brought a new level of intensity. Chinese companies raised ever-larger sums
SILICON ISLAND: When asked about geopolitical tensions, Lisa Su said that ‘Taiwan is absolutely critical to the semiconductor supply chain, and very, very critical for AMD’ Advanced Micro Devices Inc (AMD) CEO Lisa Su (蘇姿丰) yesterday said the company plans to “substantially” increase manufacturing capacity next year through its Taiwanese supply chain, particularly with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), as surging demand for artificial intelligence (AI)-related processors continues to outstrip supply. “It is a very exciting time right now for all kinds of compute, and especially on the CPU [central processing unit] side,” Su said during a visit to Taiwan. “The overall market has increased a lot in 2026, and so we have also increased our own supply and capacity in 2026, but I can
INDUSTRY STANDARD: Most global semiconductor companies have tied employee bonuses directly to corporate profits, the union said, urging Micron to do the same Micron Memory Taiwan Co’s (台灣美光) Taoyuan union secured strike authorization yesterday after a six-day vote, ramping up pressure on management to build a reasonable profit-sharing mechanism. Before the strike, the Taoyuan union “encourages” members to join a protest in Taipei on Oct. 19, union chairman Jerry Lin (林哲瑞) told a news conference in Taipei. The union did not rule out staging a snap strike, Lin said. The union has 2,258 registered members, with 88.3 percent backing the strike, he said. The vote comes as Micron’s board of directors is meeting today and tomorrow in the US. The union expects the board to respond
Sea levels in California are set to rise by as much as a foot (30cm) in the coming days as an enormous wave washes up the US West Coast. The huge surge of energy, known as a “coastal trapped wave” or a “Kelvin wave,” is part of El Nino, a months-long phenomenon in the Pacific Ocean that scientists say could generate powerful storms and floods in some parts of the world, while leaving others in drought. The Kelvin wave is not anything like a tsunami; nor does it crash on beaches. Rather it is a sustained bulge of excess water up to