$10b revenue for quarter ($40b annualized), with claim of $50b annualized for september (not october claimed in OP)
It is also having massive fundraising problems, getting $11b-$15b out of targetted $30b, covering about 1 quarter of losses ($10.5b this quarter up despite about 50% revenue growth over last quarter). It’s forced compute spending increasing a lot next quarter, and then it pays Oracle $15b/quarter extra for compute in 2027. It’s optimistic gross margins on inference at the end of the year were 50% even as they cut prices.
Industry growth is slowing overall. OpenAI would need to average 20.3% revenue growth/quarter to break even at end of 2029. That is higher than their projected 2029 revenue, which with $250b/year in forced compute purchases then, would still leave them burning $70b/year.
It is also having massive fundraising problems, getting $11b-$15b out of targetted $30b, covering about 1 quarter of losses ($10.5b this quarter up despite about 50% revenue growth over last quarter). It’s forced compute spending increasing a lot next quarter, and then it pays Oracle $15b/quarter extra for compute in 2027. It’s optimistic gross margins on inference at the end of the year were 50% even as they cut prices.
Industry growth is slowing overall. OpenAI would need to average 20.3% revenue growth/quarter to break even at end of 2029. That is higher than their projected 2029 revenue, which with $250b/year in forced compute purchases then, would still leave them burning $70b/year.
There’s no obvious escape for OpenAI.