Washington [US], November 11 (ANI): OpenAI's revenue rose by around 50 per cent in the third quarter from the previous three months to USD 10 billion, but its adjusted operating losses increased slightly to USD 10.9 billion, highlighting the challenge the artificial intelligence company faces in improving profitability despite accelerating sales, according to a news report by The Wall Street Journal (WSJ).
The company shared its latest financial figures with investors on Tuesday, showing that its adjusted operating margin improved to minus 109 per cent in the July-September quarter from minus 150 per cent in the second quarter. However, its adjusted operating loss rose from USD 10.1 billion to USD 10.9 billion during the same period, the report said.
The revenue growth marked a sharp acceleration from the second quarter, when OpenAI's revenue increased by 18 per cent over the first quarter, according to the WSJ.
Despite the improvement in revenue growth and operating margin, the company continues to face substantial losses as it invests in expanding its artificial intelligence capabilities and computing infrastructure.
The latest figures also highlight the difference in financial performance between OpenAI and its rival Anthropic. The maker of Claude recently disclosed third-quarter revenue of USD 17 billion and an operating loss of USD 567 million, according to its disclosures.
Anthropic is preparing to enter the public markets through an initial public offering (IPO), having launched a roadshow to raise up to USD 64.35 billion through a share sale priced in the range of USD 70-78 per share.
The financial performance of leading AI companies has come under increased investor scrutiny amid the scale of spending required to develop and operate advanced AI models. Questions around revenue growth, operating losses and the ability to support large computing commitments have become important considerations for investors assessing the sector.
OpenAI's latest results indicate that revenue growth is gathering pace, but the company has yet to translate that expansion into lower operating losses. Its ability to improve margins while meeting the costs of computing capacity and continued development will remain a key test as competition in the AI industry intensifies. (ANI)
OpenAI continues to report heavy losses as revenue rises to USD 10 billion
