US EditionOpenAI Sees Better Margins on Business Sales, Report Says
OpenAI raised its compute margin to 70% by October, doubling the rate from January, to improve revenue amid competition and high infrastructure costs.
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OpenAI would have raised its “compute margin” to 70% in October 2025, an internal metric that reflects how much income is left after paying the cost of running the models for paying customers. The jump suggests real improvements in efficiency and monetization, although the big question remains the same: whether the industry can sustain the pace of investment in infrastructure required by the AI race.
OpenAI 'Compute Margin' Doubles Over Nearly Two Years
OpenAI has reportedly seen better margins from its paid offerings this year. A report Sunday (Dec. 21) from The Information — also cited by Bloomberg News — says the artificial intelligence (AI) startup has improved on its “compute margin,” an in-house metric for the share of revenue after it factors in the cost of running AI models for its paying corporate and consumer users. As of October, that margin came to 70%, the report said, ci…
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Bitcoin Ethereum NewsOpenAI’s profit potential improves as compute margins near 70%
OpenAI’s compute margin is has hit 70%, according to The Information, which said the number rose from 52% at the end of 2024 and was roughly half of today’s level at the start of that same year. The rally comes while the company still reports no profit, even after being valued at $500 billion in October. The business continues to hunt for ways to cover its large computing bill and build the infrastructure that supports its models. The pressure o…
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