OpenAI is losing ground to competitor Anthropic after reporting slower revenue growth and widening losses that could concern investors before a potential initial public offering.
The company told investors revenue climbed 18% sequentially in the second quarter, hitting $6.7 billion from $5.7 billion in the first three months of the year. Its operating margin dropped further into the red, which will likely deepen concerns about the company’s ability to ever generate a profit.
Anthropic pulls ahead with profitability
Anthropic reported a 50% sequential revenue increase to $11.6 billion in the same period, just one day before OpenAI’s numbers emerged. It also recorded a small operating profit for the first time.
The difference is clear. OpenAI once led the field, helped by ChatGPT’s rapid adoption and early advantage. Growth has since slowed while Anthropic attracts more enterprise customers, especially through its coding assistant, Claude Code. OpenAI’s shift toward AI agents for business automation has coincided with key departures, including Chief Revenue Officer Denise Dresser, who left after less than a year.
The stakes extend beyond the two companies. OpenAI has raised about $180 billion, much spent on data centers and cloud contracts. Those investments assume revenue will eventually cover costs. If it doesn’t, the impact could reach tech giants like Nvidia and Oracle, whose stock prices have risen on AI-driven demand.
Related: Texas data center raises emission concerns
Growth claims lack hard numbers
OpenAI has privately told investors growth picked up after launching new models in July, though no data was provided. It also released a “super app” combining ChatGPT, its coding tool Codex, and an AI-native browser, citing strong user adoption. President Greg Brockman, one of the last co-founders still at the company, has taken a more active role in product development to regain momentum.
Financial results suggest a different reality. OpenAI’s sequential growth rate trails other AI-focused firms like CoreWeave, Micron, and Palantir.
Anthropic’s profit and revenue gains show the field is changing. OpenAI’s leadership is no longer guaranteed, and its next steps will be watched by investors, rivals, and the broader tech sector. The company’s data center expansion has raised environmental concerns in regions like Texas, where new facilities are being built.
Meanwhile, alternatives like coding tools continue to emerge, pressuring established players to adapt.