OpenAI tries to reassure investors with annualized revenue target

OpenAI reportedly assured investors it expects to reach a $70 billion annualized revenue target this year, an apparent attempt to assuage worries over it seeming to miss earlier projections, thereby casting doubt over the growth of the broader AI sector. The frontier lab’s figures are seen as key to understanding underlying demand for cutting-edge AI models, as well as justifying the huge global spending on tech infrastructure. Some analysts noted, however, that the annualized revenue metric is itself flawed, while others pointed to indicators that the AI boom shows no signs of slowing: Samsung this week estimated its third-quarter profit grew nearly ninefold, while Goldman Sachs raised its forecast for economic growth in Taiwan, a key hub in global chipmaking. — Prashant Rao