OpenAI hits $10 billion quarterly revenue but loses $10.9 billion

OpenAI grew quarterly revenue roughly 50 percent to $10 billion in Q3 — and still lost $10.9 billion on an adjusted operating basis, according to reports from the Wall Street Journal and The Information. The same quarter, rival Anthropic pulled in $17 billion while losing just $567 million, including stock compensation. The gap between the two companies' finances is now the central story of the AI industry's race toward public markets.

The numbers mark OpenAI's fastest growth since the current generation of AI models launched commercial operations in earnest. Revenue climbed about 50 percent quarter over quarter, a sharp acceleration from the 17 to 18 percent growth recorded in Q2. A year earlier, OpenAI brought in $3.9 billion for the quarter, meaning the company has roughly tripled its revenue in twelve months.

The losses, however, have not shrunk. Adjusted operating losses rose slightly from $10.1 billion in Q2 to $10.9 billion in Q3. That figure excludes stock-based compensation, which itself climbed to $2.6 billion. The one genuine bright spot in the cost structure: the adjusted operating margin improved from negative 150 percent in Q2 to negative 109 percent, though that remains worse than the negative 97 percent posted a year earlier.

Why does Anthropic look so much healthier?

Anthropic, the developer of the Claude model family, has now beaten OpenAI on revenue for two consecutive quarters. It first overtook OpenAI in Q2, when it even posted a small operating profit. In Q3, Anthropic grew revenue 47 percent to $17 billion, while its operating loss — including stock compensation — came to just $567 million.

The difference comes down to business models, not model quality. Anthropic concentrates on enterprise customers and monetizes tools like Claude Code, its coding assistant, and the Claude Cowork agent. OpenAI spreads its spending across a broad research portfolio that includes robotics and an expensive consumer business built around ChatGPT. In plain terms: Anthropic sells efficiently to companies, while OpenAI runs a mass-market product plus a research lab and pays for both.

The timing matters because Anthropic plans its IPO for next week, according to the reports. A cleaner financial profile directly ahead of a public listing gives it leverage in pricing the offering — though the recent tech sell-off has already forced Anthropic to cut its IPO valuation target significantly.

What is OpenAI doing to close the gap?

OpenAI reshuffled its priorities earlier this year to chase enterprise customers. It discontinued projects like a video app, shifted more resources into its coding tool Codex, and hired Dali Rajic as its new head of sales. At the same time, it cut prices on new models — a direct play for cost-sensitive corporate buyers.

The discounting appears to be working. Third-party data showed companies seeking cheaper alternatives to Claude, which boosted OpenAI's API sales. OpenAI president Greg Brockman called the result "an incredible revenue turning point" and pointed to major customers like JPMorgan Chase. The enterprise business doubled in Q3 and now accounts for the bulk of revenue, Brockman said.

That single line from Brockman carries the most weight in the story: a company once thought of as a consumer app business now makes most of its money from corporate contracts. Price cuts bought that shift, and price cuts also compress the margin on every API call — which is partly why the operating margin remains deeply negative despite booming sales.

How big is the consumer side?

The consumer business keeps growing regardless. ChatGPT now counts 1.2 billion weekly active users and 100 million paying subscribers, after adding 22 million new sign-ups. Beyond subscriptions, OpenAI's new ChatGPT ad product hit an annualized revenue run rate of $1 billion in August.

Advertising is a new revenue stream for the company, and reaching a $1 billion annualized run rate within months of launch suggests it could become a meaningful third leg alongside subscriptions and the API. It also signals that OpenAI is looking for ways to monetize its enormous free user base without pushing all of them toward paid plans.

What does this mean for the IPO race?

Both companies are feeling the recent tech sell-off in the financial markets. OpenAI is targeting an IPO next year and is currently raising fresh capital at a $1.25 trillion valuation. It has so far raised less than half of the planned $30 billion for that round, according to the reports.

Anthropic faces its own pressure. It had to cut its IPO valuation target significantly, a reminder that even the industry's most efficient operator is not immune to broader market conditions. Two AI leaders, two very different cost structures, and one shrinking window of investor enthusiasm — the next two quarters of financials will likely decide how both companies price their public debuts.