OpenAI's Revenue Hits $10 Billion a Quarter, but the Losses Keep Piling Up
The ChatGPT maker grew sales nearly 50% in the third quarter, yet remains far from turning a profit.
By RYAN MERCERTechnology · Nov 11, 7:00 AM
NEW YORK — OpenAI's third-quarter revenue jumped nearly 50% to about $10 billion, Bloomberg reported.
The growth has not turned into profits. Euronews, citing The Wall Street Journal, reported that the company behind ChatGPT continued to post steep operating losses. The Hindustan Times reported that OpenAI improved its adjusted operating margin but remains far from profitability, and The Hindu also reported the losses.
The math behind those losses is the story of the whole artificial intelligence industry right now. Building and running the most powerful AI systems takes enormous data centers, specialized chips and huge amounts of electricity. Revenue is growing fast, but the bills are growing too. Investors have been willing to cover the gap on the promise that the payoff will be enormous. Every quarterly report tests that promise.
The money keeps flowing anyway. Taiwanese chipmaker TSMC says it plans to invest up to $1 billion in artificial intelligence companies, including OpenAI and its rival Anthropic, NTD News reported. Those bets show how closely the world's chip giants are tied to the fortunes of a few AI labs.
As AI tools get more powerful, governments are paying closer attention. Australia announced plans to create an AI safety regulator and require companies…
