OpenAI sees better margins on business sales, report says

OpenAI has squeezed better margins out of its paid products this year, as it races to maintain its pole position in artificial intelligence, according to a report in The Information. 

The publication reported that the company improved its “compute margin,” an internal figure measuring the share of revenue after the costs of running models for paying users of its corporate and consumer products. As of October, OpenAI’s compute margins reached 70%, up from 52% at the end of 2024 and double the rate in January 2024, the publication said, citing a person familiar with the figures.  

An OpenAI spokesperson said the company didn’t release the figures and declined to comment further.

Read More: OpenAI Executives Struggle to Combat AI Spending Concerns

The ChatGPT creator set off the modern AI boom, but it has yet to show a profit, one of the main indicators for investors concerned about a bubble in the industry. Last valued at $500 billion in October, OpenAI has been searching for ways to make money to cover its high computing costs and audacious infrastructure plans. 

At the same time, the compan...