Losses grow alongside revenue
OpenAI told investors that its operating losses in the third quarter topped $10.9 billion, up from $10.1 billion in the prior quarter. According to The Wall Street Journal, revenue rose about 50 percent over the same period, but the increase was not enough to offset expenses.
Ads and revenue projections
The company began showing ads in its chatbot in February, an idea CEO Sam Altman had previously called a "last resort." In August, OpenAI said its ad division was on track to bring in $1 billion a year.
In October, the company reported annualized revenue of about $50 billion, $20 billion short of what it had told investors a month earlier. The gap fueled speculation about a bubble in AI business models.
The IPO race
OpenAI and Anthropic face more scrutiny as they prepare for expected IPOs. Anthropic has led in enterprise sales with its coding tools, while OpenAI said last week that most of its revenue now comes from enterprise sales.
