AI Valuations May Be Coming Down to Earth; A Glimpse of OpenAI’s Search Engine

The valuations of artificial intelligence startups, as a multiple of their projected future revenue, may be coming down from their peaks.

Three months ago, we calculated such valuation multiples for eight prominent companies that sell consumer or enterprise services tied to large language models. On average, investors valued these companies at 83 times their projected sales—usually calculated as annualized revenue, or 12 times their monthly revenue at the time of the investment. 

In comparison, three of the four AI startups …

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