OpenAI falls further behind Anthropic, with disappointing revenue growth and mounting losses

OpenAI Group PBC is falling further behind its rival Anthropic PBC, if its latest financials are any indication. The artificial intelligence model maker told investors that its revenue rose 18% on a sequential basis, from the first to the second quarter, but it also grew its net losses. The numbers are likely to be hugely disappointing for investors in the company, who have been hoping it would be able to show it’s catching up with Anthropic.

OpenAI said it generated $6.7 billion in sales in the three month period ending in June, up from $5.7 billion in the first quarter, according to a report by the Wall Street Journal. However, its operating margin dropped further into the red, which will likely deepen concerns that many have about the company’s ability to ever generate a profit.

The numbers, which come from undisclosed sources who are familiar with the company’s finances, are a big deal because they come ahead of a hotly-anticipated initial public offering, which many believe could take place later this year, the Journal reported. The report came just one day after Anthropic revealed that its revenue had jumped by more than 50% on a sequential basis to $11.6 billion in the second quarter. It also recorded a small operating profit for the first time.