India, Oct. 9 -- OpenAI's annualized revenue is reportedly around $50 billion as of September. This is about $20 billion lower than the earlier estimate of $70 billion.

The earlier $70 billion figure was based on an incorrect comparison with rival Anthropic. Investors reportedly arrived at the $70 billion estimate after comparing how OpenAI and Anthropic calculate their annualized revenue. The Financial Times said the earlier estimate came from investors' calculations.

Annualized revenue is an estimate of how much money a company could make in a full year based on its current revenue. In simple terms, a company takes the revenue it is making during a certain period and projects that figure over 12 months.

The problem was that OpenAI an...