📲 OpenAI makes billions in sales but struggles to stem its losses The challenge to keep pace with rival Anthropic in the booming AI market shows up clearly in OpenAI’s rising revenue offset by persistent operating losses, The Wall Street Journal reports. The numbers highlight the gap between sales growth and financial sustainability, notes the publication, citing key figures OpenAI shared with investors: ➡️ revenue climbed to $10 billion in Q3, up around 50% from the previous quarter ➡️ adjusted operating losses increased from $10.1 billion to $10.9 billion ➡️ adjusted operating margin improved from -150% to -109%, meaning losses are shrinking relative to revenue ➡️ calculations reportedly exclude stock-based compensation, which rose to $2.6 billion in Q3 The results contrast with those of Anthropic, whose revenue reached $17 billion in Q3, while its operating loss stood at a comparatively modest $567 million. OpenAI is cutting prices on its latest models to gain ground in the enterprise market, where businesses are exploring cheaper alternatives to Anthropic's Claude. Third-party data suggests the strategy helped it recover some market share in Q3. OpenAI reportedly secured less than half of its initial $30 billion target in its latest funding round and is hunting for additional investors. Anthropic is preparing for a highly anticipated IPO next week, targeting a $1.33 trillion valuation - well below the $2 trillion figure previously floated. 👍 Substack | Chat | @geopolitics_prime