OpenAI’s quarterly revenue reportedly crosses $10B for the first time
Sales of $10B represents an almost 50% jump from revenue of $6.7 billion the company recorded in the second quarter.
OpenAI has achieved a significant milestone, with its quarterly revenue surpassing the $10 billion mark for the first time, according to Bloomberg. The surge in earnings, reported anonymously, marks a substantial 50% increase from the $6.7 billion recorded in the previous quarter. This growth rate represents a notable improvement, having risen from an 18% increase between the first and second quarters.
OpenAI, a pioneer in commercializing AI models, has also shown signs of improved profitability, with its adjusted operating margin shifting from -150% in the second quarter to -109% in the third quarter. While OpenAI's top-line growth has been robust, it faces stiff competition from Anthropic, which has gained a lead in the enterprise market for AI models, recently reporting a revenue of $17 billion in Q3.
OpenAI boasts over a billion users but relies heavily on its cheapest plans, with many likely being free users. The company has managed to attract a large user base, though most are likely free or low-cost subscribers. Despite this, OpenAI lags behind Anthropic in enterprise-focused products and AI agents. OpenAI's annual revenue run rate has now reached $50 billion, while Anthropic, aiming for a $1.4 trillion valuation in an upcoming IPO, has increased its annual run rate by $10 billion to $81 billion over the last month.
Both companies face fierce competition from tech giants such as Meta, Amazon, Microsoft, and Google, as well as numerous lower-cost, yet highly capable models from open-source AI labs, particularly those based in China.
Written by urgent.news from TechCrunch's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
