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🎯 OpenAI revenue up 113%

🎯 OpenAI revenue up 113%

Plus 4 other charts on AI for investors

September 06, 2024 • Estimated Reading Time: 4 minutes

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Hello,

We are back today with a new post.

Today, we have 5 charts/infographics focussed on AI:

Who’s making money in AI?
Growth in data centers
Big Tech capex growth
GenAI: Hype or reality?
AI trade: Is it over?

Let’s dive in.

1) AI gold rush: Companies are making bank

Looking beyond Nvidia, lots of companies are generating real revenue from GenAI.

OpenAI revenue is at $3.4B ARR, and has grown 113% in 6 months. Accenture has also made a neat $500m in AI related revenue in less than a year :)

Full report here

2) Data center construction is through the roof

Data centers have been a big beneficiary of the AI boom. $ value of construction in US has grown from $15 billion in 2022 to $30 billion in 2024.

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3) Big Tech capex has accelerated with AI

Big Tech companies have significantly ramped up Capex to gain advantage in AI race, building data centers, buying hardware.

Companies are building this capacity in anticipation of demand. But will this demand come? Is GenAI hype or reality?

4) GenAI: Hype or reality

Does GenAI actually work? Bain’s survey reveals that it does, but only in some cases. Respondents (Bain’s corporate clients) said that GenAI use cases met or exceeded expectations in the fields of sales, marketing, software development and customer service. In other areas, not so much. Here are some examples:

AI handles 2/3rd of Klarna’s customer service requests, contributing $40m to profit
More case studies of real application of GenAI by companies like H&M, IHG Hotels and Mercedez Benz

Looks like there is some real substance to GenAI after all.

5) AI trade: Is it over?

Many of the AI beneficiaries who enjoyed a massive run up after ChatGPT was released into the world, are down significantly from their peak.

Investors may simply be waiting to see some more evidence of GenAI applications before hitting the buy button again. What do you think?

That’s all for this post!

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