OpenAI projects $70 billion in annualized revenue by the end of the year, according to CEO Sam Altman, who discussed the company's financial trajectory in a recent appearance on Bloomberg.

The $70 billion figure is a projection rather than current performance. Annualized revenue — often described as a run rate — extrapolates a company's recent sales across a full year, making it a common yardstick for fast-growing software businesses. OpenAI's annualized revenue stood at approximately $50 billion as of September, based on figures cited by Altman. Reaching $70 billion by year-end would represent a roughly $20 billion increase in annualized terms from the September level.

Accounting Alignment With Anthropic

The projection also brings OpenAI's reporting methodology closer to that of a leading industry peer. The $70 billion figure aligns OpenAI's accounting with that of competitor Anthropic, which includes sales made through cloud partners in its reported revenue — an approach OpenAI does not typically use. That distinction matters for headline comparisons, since sales routed through partners are recorded differently from sales billed directly to customers.

The clarification offers insight into OpenAI's growth expectations and how the company stacks up against industry rivals. OpenAI, the developer of the ChatGPT chatbot that launched in late 2022, and Anthropic, the maker of competing chatbot Claude, are among the most prominent companies in the race to build advanced artificial intelligence.

Altman's comments point to a strong financial outlook for OpenAI and are consistent with increased projections. The $70 billion annualized recurring revenue (ARR) projection also aligns with views supportive of OpenAI's valuation growth by year-end, and market behavior suggests Altman's remarks could shape perceptions regarding the company's potential timeline for an initial public offering (IPO). As a privately held company, OpenAI does not publish regular financial statements, so remarks from its leadership are among the few direct data points outside observers have for gauging its trajectory.

What to Watch

Market participants may monitor further announcements from OpenAI regarding its financial performance or IPO plans, as these could significantly influence market expectations.

Developments in strategic partnerships or new funding rounds may offer additional indications of OpenAI's valuation trajectory. Observers will also watch whether OpenAI provides more detailed disclosures or updates on its growth strategy, which could alter the current market outlook.