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OpenAI falls short of revenue and user targets as it races toward IPO, WSJ reports.

companies :: 2hrs ago :: source - Reuters

By Reuters

(Reuters) - OpenAI has fallen short of its goals for new users and revenue ‌in recent months, sparking concern among some company ‌leaders over whether it can support its extensive data-center spending, the ​Wall Street Journal reported on Monday, citing people familiar with the matter.

Here are a few details:

• CFO Sarah Friar has expressed concerns to other company leaders ‌that the ChatGPT ⁠creator might not be able to pay for future computing contracts if revenue doesn’t ⁠grow fast enough, according to the report.

• OpenAI missed multiple monthly revenue targets earlier this year after losing ​ground to ​Anthropic in coding and ​enterprise markets, the report ‌said.

• "This is ridiculous. We are totally aligned on buying as much compute as we can and working hard on it together every day," CEO and co-founder Sam Altman and Friar said in an emailed ‌statement to Reuters.

• ChatGPT's growth slowed ​toward the end of last ​year, the WSJ ​report said, adding that OpenAI fell ‌short of an internal target ​to reach 1 ​billion weekly active users for the artificial intelligence chatbot by year-end.

• The company has also grappled ​with subscriber ‌defections, the report added.

(Reporting by Disha Mishra in ​Bengaluru, additional reporting by Chandni Shah in Bengaluru; ​Editing by Rashmi Aich)


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