We had a presentation yesterday on a number of things, but one that stood out was this slide. This shows OpenAI projecting a 108% growth rate from 2024-2029 using its 2024 actual revenue of $3.7B.
A study of 19,000 companies from 1950-2024 with beginning annual sales between $2-5B, or similar to OpenAI, showed an average growth rate of 7.0%, with standard deviation of 10.6%.
The OpenAI projection is a 9.5 standard deviation from the average of the study. A 9.5 standard deviation event would occur once every 15.1 trillion years. No typo.
This balloon burst is likely to be catastrophic to the tech industry.


