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OpenAI revenue figure falls short of expectations, sending AI stocks lower

Company reports $50 billion annualized revenue at end of September, below $68 billion figure that included partner gross revenue

By LineZotpaper
Published
Read Time2 min
Sources2 outlets
Shares of Nvidia, Oracle, CoreWeave and other AI stocks sank on Thursday after OpenAI disclosed it had reached roughly $50 billion in annualized revenue at the end of September, a figure significantly lower than the $68 billion that had been widely reported late last month. The discrepancy stems from whether partner gross revenue is included, a detail that affects how investors compare OpenAI with rival Anthropic.

OpenAI shared the updated financials in an investor presentation, a person familiar with the matter told CNBC. In addition to the $50 billion annualized revenue figure, which was first reported by the Financial Times, the company touted 77% total run rate growth during the third quarter and 107% run rate growth for its enterprise business over the same period.

The company is under pressure to justify its $852 billion valuation as it prepares for an anticipated initial public offering. OpenAI confidentially filed its prospectus with regulators in June, and executives have indicated a possible 2027 market debut.

In the near term, OpenAI is in early-stage discussions with investors about a potential new funding round that could raise around $30 billion, though CNBC reports that no term sheet has been finalized and the figure could change. The round is being driven by investor demand.

OpenAI closed a historic $122 billion funding round in March. CFO Sarah Friar told CNBC last week that the company remains "very well capitalized."

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Analysis

Why This Matters

  • The revenue disclosure provides a clearer picture of OpenAI's financial health ahead of its expected IPO, directly affecting investor sentiment toward AI stocks broadly.
  • The discrepancy between the $50 billion and $68 billion figures highlights how reporting standards can significantly alter perceptions of a company's performance.
  • If AI sector leaders like OpenAI show slower growth than anticipated, it could temper the frothy valuations seen across the industry.

Background

OpenAI has been racing to scale its revenue while keeping pace with rivals such as Anthropic. The company's valuation soared after a series of massive funding rounds, including a $122 billion raise in March 2026. Its confidential IPO filing in June set the stage for what many expect to be one of the largest public offerings in history, but the company must demonstrate sustained growth to justify its price tag.

Key Perspectives

OpenAI and its investors: The company needs to show strong revenue momentum and a clear path to profitability to maintain confidence ahead of the IPO. The $50 billion figure, while below some expectations, still represents enormous scale. Market participants: Traders reacted by selling AI stocks, suggesting that any perceived weakness in a leading player can ripple through the sector. The inclusion or exclusion of partner revenue creates confusion about comparability. Critics and skeptics: The gap between the $50 billion internal figure and the $68 billion circulated earlier may raise questions about transparency. Some analysts may argue that the $852 billion valuation remains stretched even with the stronger growth metrics.

What to Watch

  • Any further details on OpenAI's funding round, especially the valuation at which new capital is raised.
  • Updates on the IPO timeline and whether the company files a public version of its prospectus with more financial disclosures.
  • Revenue growth trends in the coming quarters, particularly enterprise adoption rates, which OpenAI highlighted as a strong area.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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