AI boom redefining how firms calculate ARR as several hit $100-million mark in just months

The AI boom, characterised by an exponential rise in AI usage and research, is slowly redefining how companies define annual recurring revenue (ARR), which measures their projected income over the year. AI startups have reduced the timeline for hitting $100-million ARR mark from years to months. Startups are now calculating run-rate ARR by simply multiplying their monthly revenue by 12.