OpenAI’s $852 Billion Valuation Comes With a 35.5 Price-to-Sales Ratio — More Than Double Nvidia’s

OpenAI’s $852 billion private valuation implies a price-to-sales ratio of 35.5 — more than double the 19.8 ratio of Nvidia, a profitable leader in AI infrastructure. The company generates $24 billion in annualized revenue, primarily through ChatGPT subscriptions and enterprise API access, but it is not yet profitable. OpenAI faces $581 billion in future commitments to Oracle and Microsoft for computing capacity, spending $300 billion and $281 billion respectively, costs it cannot currently cover through operations. To bridge the gap, OpenAI will need to either scale revenue far beyond current trajectory or issue new shares, diluting existing investors. Meanwhile, competition is accelerating: Anthropic has already reached $30 billion in annualized revenue, surpassing OpenAI, and Alphabet’s Gemini benefits from owned infrastructure and custom chips. At a valuation that prices in flawless execution, the risk for new investors leans heavily to the downside.