OPENAI’S quarterly revenue rose about 50 percent to $10 billion in the third quarter (Q3), but the ChatGPT maker continued to post steep operating losses, the Wall Street Journal (WSJ) reported on Tuesday.
OpenAI told investors its adjusted operating margin improved to -109 percent from -150 percent in the prior quarter, according to documents viewed by the WSJ.
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 artificial startup companies, including rival Anthropic, as it prepares for an IPO that could value the artificial intelligence (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.
