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OpenAI Q3 revenue rises about 50% to $10 billion, but operating loss widens to $10.9 billion
OpenAI's quarterly revenue rose about 50% to $10 billion, according to the Wall Street Journal, as cited by Euronews. Its operating loss still widened to $10.9 billion from $10.1 billion.
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OpenAI grew its third-quarter revenue by about 50% to roughly $10 billion, but its operating loss is still climbing. The figures come from documents the company gave investors, as reported by the Wall Street Journal. Euronews cites the paper's Tuesday report.
What the numbers show
According to Euronews, OpenAI's revenue rose by roughly half in the third quarter, reaching about $10 billion. The operating loss came in at $10.9 billion, up from $10.1 billion in the earlier period.
The company told investors that its adjusted operating margin improved to -109% from -150% in the previous quarter. The margin is an adjusted figure, so it should not be confused with the operating loss above. Revenue grew markedly faster than losses.
The loss in absolute terms
The loss continues to grow in absolute terms. Per dollar of revenue, however, the deficit is smaller than a quarter earlier, as the improved adjusted margin reflects.
Background: Anthropic and its IPO
Euronews sets OpenAI's results against the situation of its rival. Anthropic is preparing an IPO and, according to a filing with the US Securities and Exchange Commission, aims to sell 825 million shares at $70-78 each, under the ticker ANT. The listing could value the company at around $1.4 trillion.
Seven tech companies, including Google, Nvidia, AMD and Microsoft, have agreed to buy $26 billion of non-voting shares at the IPO price in a private placement. They are investors in Anthropic or major suppliers of its computing power.
At the end of the day, I think there are three massive companies that investors have wanted to be part of for the last three years and that’s SpaceX for sure, Anthropic is next, and perhaps next year OpenAI. - Art Hogan, B. Riley Wealth Management, speaking to AFP
What it means
For the market, it is another sign that model providers are growing fast while consuming enormous amounts of capital. Euronews notes that shares of AI-linked companies remain volatile. The results should be read with caution, because they come from investor documents described by the WSJ rather than from a public company report.
