Zaid Admani

See, while OpenAI's ChatGPT is the leading AI product used by consumers, Anthropic, which is the maker of Claude, has quietly become the favorite AI provider for a lot of large companies, thanks to tools like ClaudeCode and Cowork.

And being the AI provider to big companies is a better business model.

Whoever wins Enterprise AI gets long-term contracts, sticky revenue, and massive switching costs, and that's why OpenAI is pushing hard to not let Anthropic run away with that market.

According to the information, OpenAI CEO Sam Altman hosted a private dinner in San Francisco last week with top CEOs, including Disney's Bob Iger, pitching OpenAI as the platform that can handle everything for a large company, like customer service, to code generation, to internal workflows.

And to be fair, OpenAI does make a lot of money from their enterprise business.

The company already gets about 40% of its revenue from business customers.

And CFO Sarah Fryer says that number could hit 50% by the end of this year.

Sam Altman followed up by saying that OpenAI did $1 billion in annualized API revenue in just the past month.

So OpenAI isn't just a consumer company.

They're trying to dominate both markets.

And I think that's where the problem is.

See, Anthropic is solely focused on dominating enterprise.

Yes, they still have their consumer cloud chatbot, but clearly the company is focusing on winning enterprise.

And then you have Google, which is focused on winning the consumer AI market with Gemini, and they have unlimited resources.

So OpenAI is trying to compete on both ends and losing.

You know, OpenAI has just lost their mojo and hype.

All the stuff that OpenAI has launched recently, like Sora and their AI browser, remember that?

None of those have been a hit.

So we'll see if they can bounce back and if Sam Allman can charm these CEOs to using OpenAI for the enterprise.

Let's talk about some stocks making moves today.