Doesn't mean they are on track to hit $12.7bn. Even if OpenAI was at $10bn ARR (reported as their May 2025 revenue, so $833m) every single month of the year they'd have only made $4.16bn through May. Even if they had $12bn ARR ($1bn/m) June and July, they'd be at $6.16bn, with only 5 months left!
Maths. How do it work?
Does the 1st half of a year really count?
Funny thing I stopped paying for my plus sub like 3 weeks ago. I am still a plus account. They keep sending me emails that they are about to cancel, my plus. Another way to prop up their sub numbers, I guess...
And as you are so fond of reminding, does any of that generate profit? Seems like no and as far as we’ve seen there isn’t a light at the end of the tunnel to profitability that isn’t just increase prices.
Cost of providing the service has to go down or price has to go up. The problem is that even if the actual computations get cheaper to run, OpenAI doesn't necessarily reap the benefits. They buy their cloud compute from companies like MS and Oracle who want to maximize profit on the transaction.
Microsoft and Oracle could see a 10% reduction in energy costs and OpenAI wouldn't necessarily see any reduction in their costs because MS and Oracle are in the business of providing high performance compute and have HUUUUUGE capex to recover.
nope
And this is all revenue. Is that even enough to pay Microsoft?
I need to borrow $10 billion to buy the Seattle Seahawks. I’m good for it. Hit the DM
That's a lot of money just for some birds.
It’s a dangerous sign when tech/AI stocks are surging and clean energy stocks are tanking. For life on the planet, I mean.
If rooting for bubble to burst it's just not a good thing that every single big tech company is posting INSANE revenue numbers
I’m glad I learned what “annualized revenue” is through your podcast. Now I can rightfully side-eye anyone or company touting that number.
Microsoft is doing creative accounting and why would they be so upset about the Sam Altman spat and not pursuing more Ai or hyping it all the time??
Numbers: how do they even work?