OpenAI's annualized recurring revenue reportedly nears $70 billion
ORCL•OpenAI's annualized revenue run rate is approaching $70 billion, reportedly driven by enterprise sales more than doubling since July. The run rate has risen more than 70% since the start of the third quarter, and consumer revenue in the quarter exceeded all of last year.
1. Revenue growth
OpenAI's annualized revenue run rate is approaching $70 billion, a source familiar with the matter said. The source said the run rate has risen more than 70% since the start of the third quarter in July, while enterprise sales more than doubled since July. OpenAI generated more consumer revenue in the third quarter than in all of last year.
2. Run-rate caveat
Annualized revenue run rate can be a misleading sales measure, often calculated by multiplying one month's revenue by 12, but it is commonly used by fast-growing startups.
3. Oracle connection
Oracle is a critical computing infrastructure partner to OpenAI. Analyst Gil Luria said OpenAI represents around half of Oracle's compute backlog and that OpenAI's accelerating growth reinforces its ability to meet expectations for compute capacity.
