Economy
Anthropic and OpenAI Calculate Their Revenue Differently, and Investors Struggle to Know Who's Leading
According to sources who spoke with Bloomberg, OpenAI is expected to reach by the end of the year an annual revenue run rate of 70 billion dollars, and Anthropic announced that it reached in July a rate of 65 billion dollars. But the two companies calculate their revenue differently and rely on an unusual accounting figure, so it's hard for investors to determine who's leading in the artificial intelligence race. A senior at a financial consulting firm said: 'This is another layer of doubt, which is already echoing throughout the market.'
· Source: TheMarker. Photo as published in the article
The two leading companies in the artificial intelligence industry, Anthropic and OpenAI, calculate their revenue differently, so investors trying to understand who's leading in the race run into a problem, according to Bloomberg reporting.
According to sources who spoke with Bloomberg, OpenAI is expected to reach by the end of the current year an annual revenue run rate (ARR) of 70 billion dollars. Anthropic recently announced that it reached in July an annual revenue run rate of 65 billion dollars.
According to the report, revenue is a figure that is usually under strict scrutiny. The calculation that OpenAI uses has become increasingly common in the industry, and is based on a company's actual performance in a given period to estimate its revenue in the next 12 months.
The two companies boast of enormous amounts, of revenues and of valuations, but both rely on an unusual accounting figure. 'This is another layer of doubt, which is already echoing throughout the market,' said a senior at a financial consulting firm.
Source: TheMarker
