Core Insights - The valuation multiples for major AI developers like OpenAI and Anthropic have decreased over the past year, while some AI application developers such as Perplexity and Writer have seen their multiples increase [1][2] - Investors are willing to assign high valuations to AI applications due to their revenue growth significantly outpacing that of software applications over the past decade [2] - AI startups targeting specific industries, such as healthcare and legal, are receiving the highest multiples from investors, as they leverage proprietary data to train their models [3] Valuation Trends - Perplexity's annual recurring revenue exceeded $80 million in January, a 60% increase from $50 million in November, leading to a valuation multiple of 170 [2] - Abridge, a six-year-old startup, was valued at $2.5 billion based on its $50 million annual recurring revenue, resulting in a multiple of 50 [4] - Harvey, a three-year-old legal AI startup, was valued at $2.7 billion earlier this year, a decrease from a valuation of $635 million a year ago, despite maintaining a high revenue multiple [5] Revenue Multiples of Major AI Companies - Glean's pre-investment valuation was $4.3 billion, equating to a multiple of 43 based on $100 million annual recurring revenue, which increased to a multiple of 67 with a valuation of $2 billion based on $30 million revenue [6] - Anthropic's valuation is approximately $58 billion based on an annual revenue of $1 billion, down from a multiple of 150 a year ago [6] - OpenAI's latest valuation is $260 billion, corresponding to a multiple of 43 based on an estimated annual revenue of $6 billion, a decrease from a multiple of 54 a year ago [6]