A look at differing revenue calculations of Anthropic and OpenAI, as Anthropic books gross sales through cloud partners, while OpenAI records only its net share

The stated revenue figures for AI companies can differ significantly based on accounting practices for cloud partner sales.

OpenAI's annualized revenue was approximately $50 billion at the end of September, a figure $20 billion below earlier investor estimates of $70 billion. This discrepancy arises from differing accounting methods between OpenAI and its competitor Anthropic regarding revenue booked through cloud partners. Anthropic includes gross sales from cloud providers like AWS and Google Cloud, while OpenAI records only its net share. This difference led investors to inflate OpenAI's revenue by applying Anthropic's gross booking method and a previously reported 70% growth rate, resulting in the higher $70 billion estimate. The revelation has caused market jitters, contributing to a 1.4% drop in the Nasdaq Composite and declines in shares of NVIDIA, Oracle, and Micron. This recalibration of OpenAI's financial performance occurs as the company is reportedly seeking $30 billion in funding at a $1.4 trillion valuation and as rival Anthropic prepares for a potential IPO.

The core of the revenue discrepancy lies in how companies like OpenAI and Anthropic book sales made through third-party cloud infrastructure providers. Anthropic's approach of including gross sales means their reported revenue reflects the total value of transactions facilitated by cloud partners. OpenAI, conversely, reports only its net revenue, which is the amount it directly receives after cloud partners take their share. This difference in methodology can create a substantial gap in reported figures, even when underlying business activity is comparable.

This accounting difference directly impacts how investors perceive the growth and valuation of AI companies, potentially leading to market volatility as seen with the recent stock declines. It highlights a need for greater standardization in financial reporting within the rapidly expanding AI sector to ensure accurate comparisons and informed investment decisions. As AI companies continue to raise significant capital and consider public offerings, clear and consistent financial metrics will be crucial for maintaining market confidence and sustainable growth.