OpenAI: revenue soars by 50 per cent, but the start-up is still making a huge loss

OpenAI reports a 50 per cent rise in revenue to $10 billion for the quarter but is still making a massive loss: $1.09 for every dollar taken in. This situation does nothing to allay uncertainties surrounding the future, postponed IPO

Between the second and third quarters, OpenAI recorded revenue growth of around 50 per cent, reaching $10 billion; however, the AI start-up continued to report substantial operating losses, with an adjusted operating margin falling from -150 per cent to -109 per cent, whilst the group lost $10.9 billion in the quarter, highlighting mixed results in its attempt to close the gap on Anthropic, the industry leader. The news, reported by the Wall Street Journal, increases market pressure on the AI sector as Anthropic prepares for its eagerly awaited IPO, scheduled for next week. The creator of Claude recently announced that, in the third quarter, its revenue rose to 17 billion, alongside a more modest operating loss of 567 million. The figures suggest that, although OpenAI is accelerating its revenue growth, it still has a long way to go to match its rival’s turnover and operational efficiency. In the second quarter, OpenAI recorded revenue growth of just 18 per cent compared with the first quarter. According to documents seen by the WSJ, the company told investors that, between the second and third quarters, the adjusted operating margin improved, falling from -150 per cent to -109 per cent: therefore, based on these figures, adjusted operating losses rose slightly, from $10.1 billion to $10.9 billion. The calculation of losses excludes share-based compensation, which rose to $2.6 billion in the third quarter, according to a source familiar with the matter. By contrast, the operating loss reported by Anthropic includes this component.