Key Points
- OpenAI Quarterly revenue soars by 50% to $10 billion
- Despite improved profit margins, the adjusted operating loss has continued to widen.
- Anthropic has promoted IPO, which has increased the market's scrutiny of the valuation of AI company.
OpenAI reported revenue of approximately $10 billion in the third quarter, an increase of nearly 50% compared to the previous quarter. However, while this ChatGPT developer continues to make substantial investments in artificial intelligence infrastructure, its adjusted operating loss has expanded to $10.9 billion.
According to the investor financial data reported on November 10th, the company's adjusted operating margin improved to -109%, compared to -150% in the second quarter. However, its absolute operating loss still increased from $10.1 billion to $10.9 billion, indicating that while revenue grew, expenses also rose rapidly.
OpenAI Revenue soars by 50%, but losses continue to expand
After a slow growth in the first half of the year, the quarterly revenue of OpenAI significantly accelerated, with supporting factors including increased corporate demand, reduced model pricing, and an expanded range of commercial adoption.
The company had previously set a goal of achieving an annualized revenue run rate of $70 billion by December, but as of the end of September, this figure was estimated to be around $50 billion. Such figures represent expected revenues under a specific operational rhythm and are not sales amounts that have been confirmed for the entire year.
Despite some improvement in profit margins, these financial results still indicate significant profitability challenges. On an adjusted basis, for every $1 in revenue generated by OpenAI in the third quarter, there was approximately a $1.09 operating loss.
The report indicates that the loss of $10.9 billion has not yet included the equity-based compensation of $2.6 billion; therefore, it should not be confused with the overall accounting loss or cash outflows.
Anthropic IPO Increases Valuation Pressure on OpenAI
While OpenAI is disclosing its financial data, Anthropic is preparing for its much-anticipated listing on NASDAQ. The developer's valuation could reach approximately $1.4 trillion.
Anthropic reported revenues of approximately $17 billion in the third quarter, with an operating loss of $567 million. According to the data presented in the reports, its performance is clearly superior to that of OpenAI. However, since the two companies use different definitions of expenses, the loss figures cannot be directly compared.
As competition intensifies, the market's scrutiny of the valuation of Anthropic IPO has heated up, especially as investors assess the substantial infrastructure investments required to support the operations of these two companies.
OpenAI's own expansion still relies on raising external capital and maintaining access to computing power infrastructure. The company's financial officer recently also defended the ongoing expenditure on AI infrastructure, despite the technology company's valuation facing pressure once again.
OpenAI can it achieve profitability before IPO?
The core challenge lies in how to convert the rapidly growing customer base into sustainable revenue, while managing the costs of payment computing power capacity, model development, and corporate expansion.
CoreWeave's recent financial results highlight broader infrastructure challenges. This AI cloud service provider reported revenue of $3.66 billion in the third quarter, but a net loss of $709 million, while also carrying approximately $46.9 billion in debt.
OpenAI faces different business models, but both companies are exposed to the huge costs associated with expanding AI computing power.
At the same time, the economic structure of large AI computing power contracts also makes future payment obligations particularly important, as the nominal amount stated in the contract does not necessarily represent immediate cash payments.
