OpenAI Revenue Near $50 Billion, FT Reports; Nasdaq Dips
OpenAI's annualised revenue is near 50 billion dollars, the Financial Times reported. The figure is below the 70 billion dollars some had expected.
The report weighed on tech stocks. The Nasdaq fell 1.25 percent on October 8.
Investors are watching AI spending closely. OpenAI has poured money into data centres and chips.
The company makes money from ChatGPT subscriptions and business deals. Its costs remain very high.
Analysts say the gap between hype and revenue is narrowing. But profitability is still far away.
Rival labs are also burning cash. The AI race has become a contest of computing power.
OpenAI declined to comment on the figures. Its next funding round is expected to value it even higher.
The company spends heavily on chips. Data centre costs run into billions each quarter. Revenue growth has still beaten most forecasts.
Microsoft remains its biggest backer. The partnership gives OpenAI access to vast computing power.
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