Last quarter, Anthropic's revenue surpassed that of OpenAI for the first time.

      OpenAI's growth last quarter was slower than that of Anthropic, marking the first instance in which Anthropic's sales exceeded OpenAI's. According to The Wall Street Journal, OpenAI informed investors that its revenue increased by 18 percent from the first to the second quarter, reaching $6.7 billion, yet its losses deepened during the same period. Berber Jin and Corrie Driebusch reported that this performance disappointed some shareholders.

      The focus is on the disparity with Anthropic, which more than doubled its revenue to $11.6 billion during the same timeframe, as noted by the Journal. This was the first occasion that Anthropic's sales surpassed those of OpenAI. Additionally, Anthropic reported a transition to a small operating profit, while OpenAI experienced a loss increase.

      OpenAI's revenue grew from $5.7 billion in the first quarter to $6.7 billion, according to the Journal. However, its operating loss, which accounts for stock-based compensation, expanded from $9.3 billion to $12.3 billion. Jin pointed out that while revenue increased by $1 billion, the loss increased by $3 billion. The losses deepened just as the company prepares for its public offering.

      Despite almost $7 billion in quarterly revenue being notable for many startups, OpenAI's expectations are higher. The Journal reported that the company has promised investors a remarkable growth trajectory, and it has entered into substantial computing agreements based on anticipated annual revenues in the hundreds of billions. Other tech giants like Nvidia and Oracle rely on OpenAI fulfilling these expectations.

      By this measure, OpenAI's performance fell short, lagging behind Palantir's sequential growth and that of other successful AI companies like CoreWeave and Micron. In contrast, Anthropic reported improvements in its computing resource efficiency.

      Jin expressed skepticism about OpenAI's vague Annual Recurring Revenue (ARR) figures, stating they conducted a deeper analysis and found that revenue only grew by 18 percent while losses widened significantly.

      OpenAI, however, presented a more optimistic viewpoint to investors. Sources informed the Journal that its growth rate has picked up since launching new models in July, with revenue from business clients increasing by 32 percent in July compared to June, according to the New York Times. Most of OpenAI's revenue now reportedly comes from business customers, as shared by Chief Financial Officer Sarah Friar.

      Additionally, the company is revamping its offerings, having recently launched a "super app" that integrates its Codex coding tool, ChatGPT, and a web browser. Co-founder and president Greg Brockman has started taking a more active role with product and business teams to drive renewed growth.

      These changes follow a challenging period for OpenAI's leadership, which recently saw the replacement of Chief Revenue Officer Denise Dresser after less than a year, and the departure of former Chief Operating Officer Brad Lightcap, along with Fidji Simo, who was once considered a potential successor to CEO Sam Altman.

      As both companies plan their initial public offerings, Anthropic might go public as soon as this autumn, seeking a valuation of $2 trillion, according to the Financial Times. OpenAI is expected to follow next year, and both will need to demonstrate robust growth to attract investors while facing rising costs.

      Anthropic is already establishing its plans for the IPO, including creating a multi-class share structure for greater control by its founders and expanding its credit line. However, the Journal indicated there are questions surrounding Anthropic’s reported adjusted profits, especially as it may have excluded contributions from stock-based compensation. Bloomberg reported Anthropic's preliminary revenue as $11.5 billion, slightly below the Journal's $11.6 billion figure.

      As financial results emerged, OpenAI announced it was slowing down operations. Altman mentioned on X that the company had "paused some frontier RL training to ensure we can meet appropriate alignment, security, and monitoring standards for the new level of capabilities." He noted that the progress on models was "extremely rapid."

      The pause followed a test in which OpenAI's agents compromised other companies' systems, leading some to question the stated rationale. Skeptics on social media suggested financial motives behind the decision, with one user commenting that it appeared as if the company needed to mitigate its spending to ensure a sustainable business model ahead of its IPO.

      The competitive landscape is part of the pressure faced by OpenAI, which subsidizes a significant user base that does not pay for ChatGPT and has reduced prices for some of its newer models as corporate clients shift to cheaper alternatives. Anthropic has also had to reassure investors regarding its strategy in this area.

      Currently, both companies are conveying different narratives as they approach their IPOs. While Anthropic highlights a revenue doubling and its first profit, OpenAI emphasizes its reacceleration in July and expanding business customer base. Nonetheless, the latest quarter saw Anthropic’s sales surpass OpenAI's for the first time, leaving OpenAI to