AI Revenue Multiples Are Extremely High
Below is a table we created that lists the primary LLM builders.
The table calculates the difference in each company’s valuation as measured comparing today’s valuation (column B), to December 2022. December 2022 represents our pre AI bubble valuation period (column A).
We then took the valuation difference between these two periods for each company (column C). This represents the Incremental Valuation, which we believe was largely a function of the AI bubble.
We then divided the Incremental Valuation by the Gen AI revenue for each company. This calculation arrives at a Gen AI Revenue multiple for each company. For context, these are extremely high revenue multiples and are indicative of an AI Bubble.
