This is an interesting shift compared to the past where OpenAI would’ve been public a long time ago (due to various regulations) so we would have much more direct insight.
Right now we have a ~$1 trillion company which a ton of the “economy” and valuations are based on, with near zero information on how it’s doing.
Apparently they overstated revenue in an attempt to try to provide a direct comparison with Anthropic's reported metrics.
From the article: "According to a person with knowledge of the matter, the discrepancy arose from attempts by OpenAI’s own investors to produce a direct comparison with Anthropic’s annualised revenues. The pair calculate the figure in different ways, with Anthropic including the revenue from sales via cloud partners such as AWS and Google Cloud, while OpenAI does not.
Efforts to “gross up” OpenAI’s annualised revenue led to reports that the group’s annualised revenue had hit $40bn in August. The company has since told investors its revenues have grown more than 70 per cent, leading to the $70bn figure"
Obviously not the same thing as lying, but Anthropic had also been juicing the revenues with making smart models incredibly verbose. In August my org 3x more in API credits vs July. In September the spend returned to July levels partially because they made models less verbose, but mostly because we've changed how we are using them.
This is an interesting shift compared to the past where OpenAI would’ve been public a long time ago (due to various regulations) so we would have much more direct insight.
Right now we have a ~$1 trillion company which a ton of the “economy” and valuations are based on, with near zero information on how it’s doing.
Gift link: https://giftarticle.ft.com/giftarticle/actions/redeem/f77156...
Apparently they overstated revenue in an attempt to try to provide a direct comparison with Anthropic's reported metrics.
From the article: "According to a person with knowledge of the matter, the discrepancy arose from attempts by OpenAI’s own investors to produce a direct comparison with Anthropic’s annualised revenues. The pair calculate the figure in different ways, with Anthropic including the revenue from sales via cloud partners such as AWS and Google Cloud, while OpenAI does not. Efforts to “gross up” OpenAI’s annualised revenue led to reports that the group’s annualised revenue had hit $40bn in August. The company has since told investors its revenues have grown more than 70 per cent, leading to the $70bn figure"
> Apparently they overstated revenue in an attempt to try to provide a direct comparison with Anthropic's reported metrics.
Just to clarify from my understanding of the quote, "they" here is openai investors, not openai.
Obviously not the same thing as lying, but Anthropic had also been juicing the revenues with making smart models incredibly verbose. In August my org 3x more in API credits vs July. In September the spend returned to July levels partially because they made models less verbose, but mostly because we've changed how we are using them.
Is there any understanding of how it's even 50b? Makes no sense to me.
It is rarely a challenge to turn $100 into $50.
Sam A = SBF 2.0
It's funny because this is the same thing that startups do all the time
Not a good day for OpenAI!
Not a good day for the entire Nasdaq thanks to Scam A and his magic numbers.