OpenAI’s quarterly revenue rose about 50% to $10 billion in the third quarter, but the ChatGPT maker continued to post steep operating losses, the Wall Street Journal reported on Tuesday.
OpenAI told investors its adjusted operating margin improved to -109% from -150% in the prior quarter, according to documents viewed by The Wall Street Journal
OpenAI did not immediately respond to a Reuters request for comment
Meanwhile, the company’s operating losses widened to $10.9 billion from $10.1 billion, the WSJ report said
The disclosure comes at a time when investors are closely scrutinizing the finances of AI companies, including rival Anthropic as it prepares for an IPO that could value the AI startup at about $1.4 trillion. This underscores strong investor appetite for AI companies despite concerns over profitability
The Claude chatbot creator has started a roadshow for the share sale, which is expected to set a benchmark for the sector after years of AI-driven investor enthusiasm fueled a flood of capital into the industry
Source: Emirates 24|7