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- 📈 How Much Revenue will OpenAI Make in 2024?
📈 How Much Revenue will OpenAI Make in 2024?
Today: SaaS growth stabilization | OpenAI's revenue projection | Pixel 8 reveal
Kristoffer Lindström
August 31, 2023
Hello!
It’s Thursday, August 31. In today’s update, we have added some extra illustrations and images for more in-depth information.
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Let’s dive into today’s top headlines:
OpenAI's ChatGPT Set to Surpass $1 Billion Revenue, Despite Soaring Costs
Fidelity Boosts Valuation of Elon Musk's X Stake for Third Month
Instagram Extends Reels to 10 Minutes, Challenging TikTok and YouTube
Unlocking SaaS Growth: 5 Key Insights to $30M ARR
Google's Pixel 8 and Watch 2 Reveal Soon
and more...
READ TIME: 5.0 MINUTES
What do you think about the new newsletter design?We want to give you a more in-depth view, on the most important topics. |
Tech Companies
Fidelity increased its shares' valuation in Elon Musk's X by 8% in July, marking the third consecutive month of growth.
💡 Why does this matter?
This signals growing confidence in Musk's management of X and likley the underlying performance of the business. The valuation hike could also influence other institutional investors to reevaluate their stance on X, potentially opening up new investment opportunities.
Instagram is reportedly planning to increase the maximum length of Reels from three to 10 minutes, aiming to compete more directly with TikTok and YouTube.
💡 Why does this matter?
This shift indicates Instagram's aggressive move into the long-form video space. It could reshape the competitive landscape, offering new avenues for content monetization and user engagement.
Data indicates that TikTok still rains supreme. But both Reels and YouTube Shorts is gainig traction.
Startup Scene
AI21 Labs, a Tel Aviv-based startup, has secured $155 million in Series C funding, raising its valuation to $1.4 billion. The company specializes in text-generating AI tools and competes with giants like Google, AWS, and Microsoft.
Compliance startup Hyperproof raises $40 million, doubling its valuation from nine months ago. The company aims to simplify and automate compliance tasks.
AI Corner
OpenAI is projected to earn over $1 billion in revenue within the next year, a significant leap from last year's $28 million. This revenue is generated from more than 2 million ChatGPT Plus subscribers and enterprise clients like Zoom, Wix, and Coca-Cola. Despite the revenue surge, the company faces high operational costs, estimated at around $700,000 per day, impacting its profitability. OpenAI is currently valued between $27 billion and $29 billion.
💡 Why does this matter?
The staggering revenue projections for ChatGPT indicate the growing market appetite for AI-based solutions. One should note the scalability challenges posed by high operational costs, as well as the ethical and environmental concerns surrounding large language models.
OpenAI has responded to class-action lawsuits from authors, including Sarah Silverman and Paul Tremblay, who allege that ChatGPT was trained on pirated copies of their books. OpenAI filed a motion to dismiss most claims, arguing that the use of copyrighted materials in transformative ways does not violate copyright law. The company aims to narrow the scope of the lawsuits to focus on direct copyright infringement.
💡 Why does this matter?
This legal battle could set a precedent for how AI companies use copyrighted material for training models. The outcome may influence future innovation and copyright regulations in the tech industry.
Markets & Money
Salesforce's stock surged over 5% after the company's Q3 earnings outlook exceeded Wall Street forecasts. The CRM giant expects Q3 earnings of $2.05-$2.06 per share and annual earnings of $8.04-$8.06 per share, both higher than analysts' predictions.
According to a new report by Data.ai and IDC, consumer spending in the gaming industry is leveling off faster than anticipated. Mobile games are projected to reach $108 billion in 2023, while home consoles and PC/Mac are expected to bring in $43 billion and $40 billion, respectively. Handheld consoles like the Nintendo Switch Lite saw a 20% decline in spending. Cloud-streamed gaming is expected to grow 50%, reaching $3.8 billion globally in 2023.
💡 Why does this matter?
The stagnation in gaming spend signals a maturing market, affecting game developers, investors, and advertisers. The report highlights the need for diversified monetization strategies and could influence investment decisions in the gaming sector
CrowdStrike Holdings Inc. exceeded quarterly expectations, posting a net income of $8.48 million and an adjusted EPS of 74 cents, beating the FactSet consensus of 56 cents. Revenue rose to $731.6 million, with subscription revenue at $690 million.
ChartMogul's inaugural SaaS Growth Report analyzes the growth trajectories of over 2,200 SaaS businesses, focusing on how they scale from zero to $30M in Annual Recurring Revenue (ARR). The report highlights five key insights, including the stabilization of SaaS growth rates and the rapid scaling of top-tier startups.
💡 Why does this matter?
For tech entrepreneurs and investors, understanding these growth patterns is crucial for decision-making and strategy. The report offers actionable insights into what separates best-in-class SaaS startups from the rest and acts as a good benchmark. The data in the report indicates stabilization after a declining trend for about two years.
Apps & Gadgets
Google has announced its annual Pixel hardware event for October 4 in New York City. The event will be live-streamed and is expected to unveil the Pixel 8 and Pixel Watch 2.
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