OpenAI has significantly improved its AI service profitability, with its compute margin rising from 35% in January 2024 to approximately 70% by October 2025. This surge was detailed in internal financial data obtained by The Information. In comparison, Anthropic is expected to hit a 53% margin by year-end. OpenAI’s strategies include cutting computing power rental costs, optimizing AI models, and introducing a premium subscription tier. Despite these advancements, CEO Sam Altman acknowledges that the path to full profitability remains challenging, with plans for substantial investments in computing power and circular business arrangements. Additionally, OpenAI is reportedly exploring a funding round of up to $100 billion. For the latest in AI developments, consider subscribing to THE DECODER for exclusive insights, newsletters, and ad-free content. This growth trajectory underscores OpenAI’s commitment to enhancing its market position in the competitive AI landscape.
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