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OpenAI ARR Snafu Highlights Flawed Metric

The Information
  1. OpenAI revenue error shows why ARR is an unreliable metricMany public companies have stopped issuing ARR estimates because so often it can be calculated in a clunky, error-prone way

    Clipped from The Information

    The quasi-revenue numbers for OpenAI that got wide circulation last week were off— way off. Instead of $70 billion in annualized revenue, as we and others reported, OpenAI is generating closer to $50 billion in annualized revenue (sometimes shortened to ARR).
    OpenAI ARR Snafu Highlights Flawed MetricOpen ↗