Bloomberg reported on Wednesday, citing anonymous sources, that OpenAI’s quarterly revenue crossed $10 billion for the first time in the third quarter, which would be an almost 50% jump from the $6.7 billion it reportedly recorded in the second quarter and a sizable increase in its revenue growth rate.
OpenAI, one of the first companies to commercialise AI models, also appears to have improved its profitability, the report said. Its adjusted operating margin narrowed from -150% in the second quarter to -109% in the third quarter.
OpenAI is bouncing back from the doldrums it experienced earlier this year. While 18% growth between the first and second quarters was strong by most software standards, the company was lagging rival Anthropic in catering to enterprises, where the Claude maker had pulled ahead at least in revenue growth. Anthropic had reported third-quarter revenue of $17 billion. It said on Tuesday its annual revenue run rate had risen to $81 billion as of the end of October, up $10 billion in a month.
OpenAI has now reached an annual revenue run rate of $50 billion, Bloomberg reported. However, the two companies calculate the metric differently: Anthropic counts sales made by its cloud partners, while OpenAI only reports its share of some partner-led sales.
OpenAI has recently benefited from tighter pricing, discounts, improving models and a greater focus on enterprise products and AI agents. The company says it has over a billion users, though it is reasonable to assume most are free users or subscribers to its cheapest plans.
Analysis
Why This Matters
- OpenAI’s revenue milestone signals a recovery from a slower growth period and solidifies its position as a major AI company even as it faces intense competition.
- The gap between OpenAI’s and Anthropic’s revenue run rates shows how quickly enterprise demand is reshaping the AI landscape, with Anthropic pulling ahead.
- The narrowing operating margin suggests OpenAI is becoming more efficient, which will be closely watched by investors as both companies eye public listings.
Background
OpenAI kicked off the generative AI boom with the 2022 launch of ChatGPT. It has since faced increasing competition from Anthropic, which has won large enterprise contracts, as well as models from Meta, Amazon, Microsoft, Google and cheaper open-source alternatives from Chinese labs. Anthropic is reportedly seeking a $1.4 trillion valuation in an IPO that could happen soon.
Key Perspectives
Bloomberg (citing anonymous sources): reports OpenAI’s Q3 revenue exceeded $10 billion for the first time, up from $6.7 billion in Q2, with an adjusted operating margin of -109%.
Anthropic: said its annual revenue run rate reached $81 billion as of the end of October, up $10 billion in a month, and reported Q3 revenue of $17 billion.
What to Watch
- Whether OpenAI can sustain its growth acceleration into the fourth quarter and beyond.
- Anthropic’s IPO timeline and valuation, which could reset market expectations for AI company valuations.
- How the enterprise market shares out between the two leading AI companies as they both build more agent-based products.
Checked
12 claims in this story checked against 1 source: 10 supported.
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- SupportedOpenAI’s quarterly revenue reportedly topped $10 billion for the first time.TechCrunch: “The company’s quarterly revenue crossed $10 billion for the first time, thanks to strong demand for its recent AI models, Bloomberg reported, citing anonymous sources.”
- Partly supportedBloomberg reported the news on Wednesday, citing anonymous sources.TechCrunch: “Bloomberg reported, citing anonymous sources.”
- SupportedThe quarterly revenue crossing occurred in the third quarter.TechCrunch: “OpenAI’s profitability picture also appears to have improved, with its adjusted operating margin narrowing from -150% in the second quarter to -109% in the third quarter, the report said.”
- SupportedThe reported revenue would be an almost 50% increase from $6.7 billion in the second quarter, and a sizable increase in revenue growth rate.TechCrunch: “If true, that would represent an almost 50% jump from the $6.7 billion in sales the company reportedly recorded in the second quarter. That would also mark a sizable increase in its revenue growth rate”
- SupportedOpenAI’s annual revenue run rate has reached $50 billion, according to Bloomberg.TechCrunch: “OpenAI has now reached an annual revenue run rate of $50 billion, according to Bloomberg.”
- SupportedOpenAI’s adjusted operating margin narrowed from -150% in the second quarter to -109% in the third quarter, suggesting improved profitability.TechCrunch: “OpenAI’s profitability picture also appears to have improved, with its adjusted operating margin narrowing from -150% in the second quarter to -109% in the third quarter, the report said.”
- Partly supportedAnthropic said on Tuesday that its annual revenue run rate was $81 billion at the end of October, up $10 billion in a month.TechCrunch: “Anthropic, which is seeking a $1.4 trillion valuation in an IPO likely to happen soon , said yesterday that its annual revenue run rate had increased by $10 billion within a month to $81 billion as of the end of October.”
- SupportedAnthropic had reported third-quarter revenue of $17 billion.TechCrunch: “recently reported Q3 revenue of $17 billion”
- SupportedOpenAI’s adjusted operating margin narrowed, while its annual run rate reached $50 billion and Anthropic’s reached $81 billion.TechCrunch: “OpenAI has now reached an annual revenue run rate of $50 billion, according to Bloomberg. Meanwhile, Anthropic ... said yesterday that its annual revenue run rate had increased by $10 billion within a month to $81 billion as of the end of October.”
- SupportedOpenAI and Anthropic calculate annualized revenue differently: Anthropic counts cloud-partner sales, while OpenAI reports only its share of some partner sales.TechCrunch: “Anthropic counts sales made by its cloud partners, while OpenAI only reports its share of some sales through its partners.”
- SupportedOpenAI has recently benefited from tighter pricing, discounts, improving models, and a greater focus on enterprise products and AI agents.TechCrunch: “OpenAI has recently benefited from a combination of tighter pricing, discounts, improving models, and a greater focus on building more enterprise-focused products and AI agents that can help people complete tasks.”
- SupportedOpenAI says it has over a billion users, though most are reasonably assumed to be free users or subscribers to its cheapest plans.TechCrunch: “it says it has over a billion users , but it’s reasonable to assume most of those are free users or subscribers to its cheapest plans.”
