OpenAI reported a nearly 50% increase in revenue to $10 billion in the third quarter, reflecting growing demand for its artificial intelligence products and enterprise offerings. However, the company's operating losses also widened during the period, rising to $10.9 billion from $10.1 billion in the previous quarter, according to documents reviewed by The Wall Street Journal.
Despite the increase in losses, OpenAI recorded an improvement in its adjusted operating margin, which moved to -109% from -150% in the preceding quarter. The development points to some progress in the company's unit economics, although its overall spending continues to exceed revenue.
The financial performance highlights the substantial investments required to develop and operate advanced AI systems. OpenAI has been expanding its computing infrastructure, enterprise offerings and consumer products while exploring additional revenue opportunities across AI agents, e-commerce and advertising.
The latest figures come at a time when investors are increasingly examining the ability of leading AI companies to convert rapid revenue growth into sustainable profitability.
Competition in the sector is also intensifying, with rival Anthropic beginning its IPO roadshow at a potential valuation of approximately $1.4 trillion. The financial performance of both companies has brought the economics of developing and commercialising advanced AI models into sharper focus.
OpenAI has also been expanding its commercial offerings. On November 10, the company introduced tools that allow businesses to claim profiles within ChatGPT and launched AI agents targeted at US-based e-commerce businesses. The initiatives form part of its broader strategy to position ChatGPT as a platform for commercial discovery and transactions.
The company has also reported strong momentum in its enterprise business. OpenAI CFO Sarah Friar said last week that business growth increased 70% quarter-on-quarter in Q3, while enterprise demand doubled.
While the improvement in adjusted operating margin signals progress towards better financial efficiency, the widening quarterly operating loss underscores the scale of investment still required as OpenAI continues to expand its presence in the global AI market.
