OpenAI Still Far From Profitability Despite $10 Billion Revenue

OpenAI’s adjusted operating loss widened to $10.9 billion in the third quarter as revenue rose roughly 50% from the previous quarter to $10 billion.

The ChatGPT maker told investors on Tuesday that its adjusted operating margin improved to minus 109% from minus 150% in the second quarter, when it posted a $10.1 billion adjusted operating loss.

Revenue growth had been 18% in the second quarter, according to investor documents reviewed by The Wall Street Journal.

OpenAI’s adjusted loss excludes stock-based compensation, which rose to $2.6 billion in the third quarter, the Journal reported, citing a person familiar with the matter.

Anthropic Reports $17 Billion in Sales

Anthropic, which is preparing for an initial public offering, disclosed third-quarter revenue of $17 billion and an operating loss of $567 million.

Its loss includes stock-based compensation. The Claude maker posted a small operating profit in the previous quarter.

Anthropic overtook OpenAI in sales earlier this year as its Claude Code tool gained popularity.

OpenAI has cut prices for its latest models to win more business customers and hired Dali Rajic as chief revenue officer to focus on enterprise sales, which account for a growing share of its revenue.

Third-party data cited by the Journal showed OpenAI gained ground on Anthropic in the third quarter as some businesses sought cheaper alternatives to Claude.

OpenAI President Greg Brockman described the quarter as an “incredible revenue inflection” at a Journal conference, where he cited a new partnership with JPMorgan Chase.

ChatGPT Reaches About 100 Million Paying Users

OpenAI told investors that roughly 100 million people paid for ChatGPT, equivalent to 8.5% of its weekly active users.

That share edged up from the previous quarter. The company also began running ads on ChatGPT earlier this year and expects advertising to improve margins.

OpenAI is preparing to list its shares next year.

Its latest financing round brought in less than half of its initial $30 billion target, and the company is still seeking investors, the Journal reported.

Anthropic is targeting a $1.33 trillion valuation in its listing, down from the roughly $2 trillion figure floated months earlier.