OpenAI revenue hits $10b, but operating loss widens

Dubai: OpenAI’s quarterly revenue reached $10 billion for the first time in the three months to September, according to a Bloomberg report. Demand for the company’s latest artificial intelligence software is what is said to have contributed to the increase.

Revenue climbed nearly 50 per cent from the second quarter and almost tripled from the same period a year earlier. People familiar with the matter outlined the figures and asked not to be identified because the information is not public.

Executives shared the numbers with investors on a call on November 10. President Greg Brockman, Chief Financial Officer Sarah Friar and product leader Thibault Sottiaux answered shareholder queries.

Adjusted losses still exceed revenue

Losses have finally narrowed. Adjusted operating margin improved to -109 per cent from -150 per cent between the second and third quarters. On that measure, OpenAI lost about $1.09 for every $1 earned, down from $1.50. The dollar loss still grew, though. Operating losses rose to $10.9 billion from $10.1 billion, the Wall Street Journal reported. 

OpenAI also told investors it ended September with roughly $50 billion in annualised revenue; another report showed that figure at $70 billion. That makes up for the recent sales to a full-year pace.

The business has regained momentum after witnessing a weak stretch. OpenAI had slipped behind rival Anthropic this year by some measures. Competitive new models, aggressive price cuts and a sharper focus on AI agents that automate work have since helped. OpenAI’s business now however, shows signs of accelerating while Anthropic’s growth has begun to slow.

Close competition

Anthropic reported third-quarter revenue of about $17 billion. Growth from the second quarter eased to around 47 per cent. The previous quarter’s increase topped 140 per cent. OpenAI’s sequential growth of nearly 50 per cent now sits close to that rate. The two companies have historically calculated revenue differently. Reported figures put Anthropic about $7 billion ahead, but the numbers can’t be compared directly.

A roadshow has begun for Anthropic’s public listing later this month, which targets a valuation near $1.4 trillion. That sits $150 billion above OpenAI’s latest funding valuation. Investors are scrutinising AI company finances closely, yet appetite for the sector stays strong.