Report says OpenAI quarterly revenue passed $10 billion for first time

In short: A report says OpenAI brought in more than $10 billion in revenue in a single quarter for the first time.

What happened

Bloomberg reported, citing anonymous sources, that OpenAI’s quarterly revenue crossed $10 billion. A quarter is a three month slice of the year, like a season in a TV show.

If accurate, that would be a big jump from the $6.7 billion in revenue OpenAI reportedly made in the second quarter. That is close to a 50% increase.

The report also says OpenAI’s losses improved. Its “adjusted operating margin” moved from -150% in the second quarter to -109% in the third quarter. Operating margin is a way to compare how much money a company keeps versus spends while running its business (like looking at how much is left after paying the regular bills), and negative numbers mean it is still spending more than it brings in.

TechCrunch also notes that OpenAI has been competing closely with rival AI company Anthropic, especially for business customers. OpenAI has said it has over a billion users, but many may be on free or low cost plans.

Bloomberg also reported that OpenAI has reached an annual revenue run rate of $50 billion. A run rate is a simple estimate that assumes the current quarter repeats for a full year (like doubling a strong month to guess a full year), and it can change quickly.

Why it matters

OpenAI’s tools, including ChatGPT and its AI models sold to businesses, are part of products many people use at work and at home. Rising revenue suggests more people and companies are paying for these services, even as competition increases and costs remain high.

Source: TechCrunch AI