OpenAI told investors its revenue grew by 18% from the first to the second quarter, while its losses deepened, results that disappointed some shareholders who had hoped the startup would show more progress catching up to its rival, Anthropic.

The company said its revenue grew to $6.7 billion in the three months ended in June, up from $5.7 billion in the first quarter. Meanwhile, its operating margin sank further into the red, pushing the company farther away from profitability ahead of a much-anticipated initial public offering, people familiar with the matter said.

Anthropic more than doubled its revenue to $11.6 billion in the same period, marking the first time its sales surpassed its older rival. The company also swung to a small operating profit.

The two companies’ diverging fortunes show just how drastically the artificial-intelligence race has shifted since the beginning of the year. A slowdown in the growth of ChatGPT, combined with the success of Anthropic’s hit coding tool, Claude Code, has put OpenAI on its back foot, forcing the company to pivot its business and overhaul its leadership team.

Last week, the company replaced its chief revenue officer, Denise Dresser, after she spent less than a year on the job. Her departure followed a string of other exits, including former chief operating officer Brad Lightcap and Fidji Simo, once seen as the heir apparent to CEO Sam Altman.

OpenAI has told investors that its growth rate has picked up since the launch of a set of new models in July, the people said.

News Corp, owner of The Wall Street Journal, has a content-licensing partnership with OpenAI.