OpenAI’s revenue jumped about 50% to $10 billion in the third quarter, its first time reaching that level, while operating losses widened to $10.9 billion from $10.1 billion in the previous quarter.

Even as losses grew, OpenAI’s operating margin improved to minus 109% from minus 150% in the prior quarter.

The Wall Street Journal reported that the quarter was stronger than OpenAI’s first two of the year; OpenAI president Greg Brockman called the earlier stretch “hard” and described the latest results as an “incredible revenue turnaround,” while acknowledging the company remains far from profitable.

The rebound reflects stronger enterprise adoption, demand for more capable and competitive models, price cuts, and a sharper push into AI agents that automate workplace tasks.

Third-party data also suggested OpenAI gained ground as businesses looked for lower-cost alternatives to Anthropic’s Claude models.

OpenAI makes money through consumer and workplace subscriptions, usage-based APIs, and a free tier supported by advertising and commerce; investment in compute is meant to improve its models and products, expand adoption, and drive further revenue.

That growth strategy depends on securing compute capacity years ahead, with OpenAI deploying capital in stages and using infrastructure partners rather than owning all its capacity; Sarah Friar has noted that available capacity can lead or lag demand.

The central business challenge is turning rapid adoption and substantial commitments to infrastructure into lower operating losses without sacrificing the compute needed to keep growing.

OpenAI is completing a funding round valuing it at $1.25 trillion, including an initial $11 billion tranche, and has delayed its expected IPO until 2027.

The financial figures emerged shortly before Anthropic’s planned public-market debut, as OpenAI seeks to regain the lead in the AI race before its own expected listing.

Anthropic, the creator of Claude, has begun a roadshow for a planned share sale that could value the company at about $1.4 trillion.

Anthropic reported about $17 billion in third-quarter revenue, but its sequential growth slowed to around 47% from more than 140% in the prior quarter; the companies’ figures are not directly comparable because their accounting differs, including the treatment of stock-based compensation.