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.\u00a0<\/p>\n
The publication reported that the company improved its \u201ccompute margin,\u201d 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\u2019s 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. \u00a0<\/p>\n
An OpenAI spokesperson said the company didn\u2019t release the figures and declined to comment further.<\/p>\n
Read More:\u00a0OpenAI Executives Struggle to Combat AI Spending Concerns<\/a><\/p>\n 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\u00a0in October<\/a>, OpenAI has been searching for ways to make money to cover its high computing costs and audacious infrastructure plans.\u00a0<\/p>\n At the same time, the company is facing\u00a0intense pressure<\/a>\u00a0over its spending and renewed competition. After the Gemini model from Alphabet Inc.\u2019s Google<\/a> performed better on benchmarks, OpenAI Chief Executive Officer Sam Altman called a \u201ccode red<\/a>\u201d to redirect internal resources to improve ChatGPT, and delayed progress on plans for an advertising service.\u00a0<\/p>\n Most people use ChatGPT\u2019s free version. However, the company is pushing its business version and paid software features for industries like financial services and\u00a0education<\/a>, where it competes with Google and rival Anthropic.<\/p>\n The Information reported that OpenAI has better compute margins than Anthropic for paid accounts, but that Anthropic has better efficiency on server spending overall. \u00a0<\/p>\n OpenAI is also in\u00a0early talks<\/a>\u00a0to raise at least $10 billion from Amazon<\/a>.com Inc. and use its chips, in a deal that could value Altman\u2019s company at north of $500 billion.<\/p>\n Join us at the Fortune Workplace Innovation Summit May 19\u201320, 2026, in Atlanta. The next era of workplace innovation is here\u2014and the old playbook is being rewritten. At this exclusive, high-energy event, the world\u2019s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"OpenAI has squeezed better margins out of its paid products this year, as it races to maintain its…\n","protected":false},"author":2,"featured_media":196344,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,69,620,1657,145],"class_list":["post-196343","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-new-zealand","tag-newzealand","tag-nz","tag-openai","tag-sam-altman","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/196343","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=196343"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/196343\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/196344"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=196343"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=196343"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=196343"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}