OpenAI Q3 revenue lags Anthropic as IPO prospects dim
OpenAI reported $10 billion in Q3 revenue, trailing Anthropic’s $17 billion, while facing significant cash burn. Analysts suggest a standalone IPO is unlikely, pointing instead toward a merger or cost-cutting measures.
OpenAI disclosed to investors that it generated $10 billion in revenue in the third quarter, a 50% increase quarter-over-quarter. However, this figure trails Anthropic’s $17 billion run-rate, highlighting a widening gap between the two leading AI labs. The company’s adjusted operating margin loss improved from -150% to -109%, meaning it loses $11 billion on every $10 billion in revenue. OpenAI faces an annual cash burn estimated between $20 billion and $40 billion. Given these financial pressures, analysts suggest that a standalone IPO in 2027 is unlikely. Instead, the market views a merger with Anthropic or Google, or a massive cost-cutting program, as more probable outcomes. The company recently acquired travel startup Odysseia in an acqui-hire, a move that caused stock drops for Expedia, Airbnb, and Booking.com, though the market impact is considered overblown due to supply-side bottlenecks in the travel industry. OpenAI is described as 'too big to fail' but not viable for a market exit at current valuations without significant structural changes.