OpenAI and Anthropic Revenue Breakdown - by Tanay Jaipuria

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2024-10-03 02:00:02

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With both OpenAI and Anthropic rumored to be raising new financing rounds, some of their financial metrics have been reported by various publications. In this piece, I’ll discuss what we know about their financials and highlight a few observations from that data.

Revenue: OpenAI is at ~$3.6B in annualized run rate revenue as of August 2024, and was roughly at $1.6B in annualized run rate revenue near the tail end of 2023. Based on their projected total revenue of $3.7B for 2024, I estimate OpenAI ending 2024 at ~$5B-5.2B in annualized run rate revenue. This would represent a growth rate of 225% y/y from $1.6B at the end of last year. OpenAI also further projects to get to $11.6B in revenue in 2025, an increase of 213% y/y next year if they are able to achieve it.

Margins: We don’t know much about OpenAI’s margins, but given reports that they are expected to lose about $5B this year on about $3.7B of revenue which is obviously not great. Futuresearch estimates that their API business actually has ~50% gross margins, and that most of the losses come from operating costs (R&D, etc) and their ChatGPT business, which gives basically unlimited usage for ~$20/month.