OpenAI Continues to Suffer Heavy Losses as Revenue Rises to $10 Billion

Dow Jones
7 hours ago

OpenAI grew revenue by roughly 50% to $10 billion from the second to the third quarter, but continued to report heavy operating losses, showing mixed results in its effort to catch up with industry leader Anthropic. 

The company shared its latest results with investors on Tuesday, just as Anthropic was preparing to mount its much-anticipated IPO next week. The maker of Claude recently disclosed that its revenue rose to $17 billion in the third quarter while reporting a smaller operating loss of $567 million during that period. 

OpenAI told investors that its adjusted operating margin improved from -150% to -109% from the second to the third quarter, according to documents viewed by The Wall Street Journal. 

Even so, the company’s operating losses ticked up slightly from $10.1 billion to $10.9 billion, based on those figures.

OpenAI is racing to gain ground against Anthropic in the lucrative enterprise market for AI products, and has cut the prices of its latest models in an effort to grow market share. The company recently hired a new chief revenue officer, Dali Rajic, to focus on this business segment, which is steadily accounting for a larger share of the company’s overall sales.

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

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