OpenAI’s revenue climbed to $10 billion (A$14.59 billion) in the third quarter, marking a roughly 50 per cent increase on the previous quarter. However, the ChatGPT creator’s operating losses also continued to mount, reaching $10.9 billion ($15.91 billion).
According to documents reviewed by The Wall Street Journal, the company told investors its revenue had grown from approximately $6.7 billion in the second quarter, while its adjusted operating loss increased from US$10.1 billion.
Despite the larger loss, there were some signs of improvement.
OpenAI told investors its adjusted operating margin improved to -109 per cent, up from -150 per cent in the previous quarter. In other words, the company is generating more revenue relative to its operating losses, although spending continues to outpace revenue.
The figures offer a fresh look at the finances behind one of the world’s most valuable AI businesses—which beggars belief when you consider how dire its financial statements are—as investors increasingly scrutinise whether the industry’s enormous spending commitments can translate into sustainable profits.
The revenue growth also comes as OpenAI looks to strengthen its corporate offering through pricing changes, additional sales hires and distribution partnerships, with competition for enterprise AI customers intensifying.
The company has also continued to expand its AI safeguards and content policies. In October, OpenAI rolled out invisible text watermarking for ChatGPT and Codex-generated content across Europe and for API developers globally, following a similar move by Anthropic.
OpenAI has also faced scrutiny over its reputation and the broader impact of its products in Australia.
In August, Roy Morgan brand trust data reported by B&T showed OpenAI had fallen three spots to become Australia’s 16th most-distrusted brand, amid growing consumer anxiety over AI.
That same month, the company launched a dedicated ChatGPT experience for teenagers aged 13 to 17, featuring stricter content safeguards and rolling out across Australia and New Zealand.
At the time, Brent Thomas, OpenAI’s head of policy for Australia and New Zealand, said the company wanted teenagers to be able to use AI to “learn, create and explore”, but with safeguards appropriate to their age.
“That means access should come with protections that reflect their developmental stage, reinforce relationships with trusted people in their lives and support healthy use over time.”
The financial update also arrives amid growing investor attention on OpenAI’s closest rival, Anthropic, which is reportedly preparing for a potential public listing that could value the Claude creator at approximately $1.4 trillion.
The anticipated listing is expected to provide another major test of investor appetite for AI businesses, particularly as both companies continue to attract enormous capital while facing questions about their path to profitability.
OpenAI is also reportedly preparing for a public listing. In reporting by CNBC, OpenAI CFO Sarah Friar told employees that the AI lab “will be a public company in 2027”.
It follows a recent interview in Fortune where Sam Altman said OpenAI wouldn’t be going public in 2026.
