US EditionOpenAI Falls Short of Revenue and User Targets as It Races Toward IPO, WSJ Reports
Sarah Friar warned the company may struggle to fund future computing contracts as competition from Google and Anthropic slowed growth.
- On Monday, The Wall Street Journal reported OpenAI missed revenue and user growth targets. Chief Financial Officer Sarah Friar warned leadership the company might struggle to pay for $1.5 trillion in future computing contracts.
- CEO Sam Altman spearheaded aggressive deal-making in recent years, accumulating an estimated $600 billion in future spending commitments for data centers to support ambitious growth targets.
- OpenAI failed to reach its internal goal of 1 billion weekly active users for ChatGPT by the end of 2025. Competition from Google's Gemini and Anthropic in enterprise and coding markets contributed to the stagnation.
- SoftBank shares, holding a 13% stake in OpenAI, fell 10% in Japan following the report. Altman and Friar issued a joint statement declaring they are 'totally aligned on buying as much compute as we can.'
- Executives are pushing for tighter spending controls ahead of a potential IPO later this year. Some company leaders fear the 'bold vision' has become unsustainable given the vast financial commitments now at risk.
32 Articles
32 Articles
OpenAI Reportedly Misses Its Own User and Sales Goals
OpenAI recently failed to meet its own goals for new user acquisition and sales, fueling internal concerns that the company may struggle to support its spending on AI infrastructure, the Wall Street Journal reported.
OpenAI misses revenue, new user goals in painful stumble ahead of blockbuster IPO: report
OpenAI fell short of internal revenue and new user goals ahead of a potential IPO later this year – raising concerns about whether it will be able to offset massive spending on AI, according to a report Monday night.
OpenAI says reports about a split between Sam Altman and his CFO are "ridiculous"
OpenAI Sam Altman is reportedly planning on taking his company public in 2026.Bloomberg/Getty ImagesThe Wall Street Journal reports that OpenAI CEO Sam Altman doesn't see eye to eye with his CFO, Sarah Friar.Earlier this month, The Information had a similar story.OpenAI says stories about a rift between the two are "ridiculous." But it's not what it wants to talk about before a massive IPO.Sam Altman is facing off against Elon Musk in court this…
OpenAI Misses Key Revenue, User Targets in High-Stakes Sprint Toward IPO
OpenAI recently missed its own targets for new users and revenue, stumbles that have raised concern among some company leaders about whether it will be able to support its massive spending on data centers.
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