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OpenAI revenue keeps surging as company seeks $30 billion in fresh capital

Credited to The Decoder · the-decoder.com20h ago

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OpenAI's annualized revenue rate stood at roughly $50 billion at the end of September, according to the Financial Times. The previously reported figure of nearly $70 billion (see below) was based on a calculation designed to make OpenAI's revenue more comparable to Anthropic's, Axios reports.

The gap comes down to how each company books partner sales, so it's an accounting question. Anthropic records the full customer payment when selling through cloud partners, then logs the cloud provider's cut as an expense. OpenAI only counts its own share as revenue for certain partner deals. Ad

Both methods comply with US GAAP standards, according to Axios. The difference depends on each company's role in the transaction, meaning who controls the customer relationship and who's responsible for delivering the product. Ad

A single report rattled chip stocks and spooked investors

After the Financial Times report landed, tech stocks took a hit, with chip stocks dropping several percent. The selloff shows how jittery the market has become and how tightly it tracks the two biggest US AI companies. That nervousness may also help explain why Anthropic is moving cautiously on its IPO and why OpenAI has already pushed its own public offering to next year.

OpenAI CEO Sam Altman recently blamed the delay on safety risks, but the postponement was already in the works well before the cybersecurity incidents of recent months. Back in April, reports surfaced that OpenAI had missed its internal growth targets. Ad

OpenAI still growing fast and hunting for fresh capital

Separately, OpenAI expects to actually hit an annualized revenue rate of at least $70 billion by the end of 2026, according to Bloomberg. OpenAI shared the figures during talks about a new funding round, Bloomberg says. The main driver is its expanding enterprise business, with overall annualized revenue growing 77 percent in the third quarter and enterprise revenue jumping 107 percent, CNBC reports.

Original · The Decoder

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OpenAI's annualized revenue rate sits at about $50 billion, well below the initially reported $70 billion figure that was based on a different accounting method. The correction sent chip stocks sliding. Meanwhile, OpenAI is negotiating at least $30 billion in fresh capital at a…

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Chips & Supply · United States

Nvidia reportedly halts GeForce RTX 5090 production in favor of AI data center and professional GPUs

Credited to Tom's Hardware · tomshardware.com · 1h ago

Photograph · Tom's Hardware

Nvidia has reportedly ceased selling its GB202 graphics processors for consumer-grade GeForce RTX 5090-series add-in-boards (AIBs), including 'D' variants for the Chinese market, according to a leaked notice from an unknown factory cited by @hongxing2020, who tends to have insights into the graphics card market. Another prominent leaker @Zed__Wang confirmed the report and said that from now on the GB202 silicon will be exclusively used on data center and professional graphics cards.

"According to a notification from the factory, Nvidia will no longer manufacture any RTX 5090 models, including the D variants," a message cited by @hongxing2020 reads. "Going forward, the highest-end GeForce graphics card will be the RTX 5080 24GB, while the RTX 5080 16GB version will be discontinued. Please spread the word."

This is, of course, an unverified claim and not an official Nvidia announcement. We asked Nvidia for a comment, though the company has yet to respond. Typically, Nvidia does not comment on rumors.

While the information is strictly unofficial for now, the alleged decision would make considerable economic sense for Nvidia, as the company can sell GB202 processors on data center and professional graphics cards that cost substantially more than the GeForce RTX 5090. In fact, Nvidia's recently introduced RTX Pro 5500 features the same number of CUDA cores — 21,760 — as the GeForce RTX 5090, but comes with 84GB of GDDR7 memory instead of 32GB and targets considerably more lucrative professional visualization (ProViz) and AI applications. Meanwhile, the fully-fledged RTX 6000 Pro with 24,064 CUDA cores and 96 GB of memory can easily sell for $15,000.

By discontinuing GB202-based GeForce products, Nvidia could prevent its relatively inexpensive consumer graphics cards from competing with its own professional accelerators in the lucrative AI sector. Essentially, the company is redirecting its limited semiconductor manufacturing allocation toward higher-margin products without necessarily sacrificing its position in the gaming market, as neither the GeForce RTX 5080 nor RTX 5090 have direct rivals.

Even if Nvidia has indeed discontinued shipments of GB202 processors for consumer graphics cards, GeForce RTX 5090 boards are unlikely to disappear from the market overnight. Nvidia's add-in-board partners, distributors, and retailers likely have inventories of GPUs and finished graphics cards that could sustain availability for some time. However, if Nvidia no longer supplies GB202 processors for GeForce products, the availability of RTX 5090 cards will inevitably decline, which will affect prices of these AIBs.

Meanwhile, Nvidia could be preparing to refresh its GeForce RTX 50-series lineup. The company has long been rumored to be developing GeForce RTX 50 Super graphics cards, including an RTX 5080 Super with 24GB of GDDR7 memory, although their introduction has reportedly been postponed due to memory supply constraints. The rumored GeForce RTX 5080 24GB could therefore represent a revival of these plans, and with no more GeForce RTX 5090 32GB on the market, the new product will have better memory supply.

Nvidia is also developing its next-generation Rubin-based GeForce RTX 60-series GPUs, but recent rumors suggest that these products will not arrive until late 2027, or even 2028. Consequently, if the reports about the discontinuation of the GeForce RTX 5090 are accurate, Nvidia could leave the enthusiast gaming market without a GB202-class flagship for a considerable period, so if you are in the market for the absolute best graphics card, now is the time to get it.