Ed Zitron’s recent investigative journalism has shed light on the intricate commercial arrangements between OpenAI and Microsoft, attracting attention from major outlets like the Financial Times. Key findings reveal OpenAI’s financial obligations to Microsoft, including a significant 20% revenue share on sales from platforms like ChatGPT and the API, alongside Azure hosting costs. With substantial volatility in the U.S. stock market—evidenced by a 2% drop in the Nasdaq—investors are keenly interested in OpenAI’s revenue growth, which is projected to reach approximately $3.7 billion in 2024. Zitron’s analysis suggests these revenue-sharing agreements involve cash reconciliation delays, impacting when Microsoft receives payments. Various scenarios detail how to interpret these cash flows, revealing that actual revenues may lag behind reported figures. As some infrastructure stocks like Oracle and CoreWeave decline, the importance of understanding OpenAI’s revenue dynamics becomes crucial for market stability.
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