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Sources: OpenAI generated ~$5.7B in revenue in Q1, ~$1B more than Anthropic; its adjusted operating income margin was -122%, and ChatGPT user growth stalled

OpenAI generated about $5.7 billion in revenue in the first quarter, nearly $1 billion more than archrival Anthropic generated in the same period …

The Information Sri Muppidi

Context & Ripple Effects

OpenAI’s reported revenue trajectory has accelerated sharply from the roughly $1.3B annualized run rate cited in October 2023 to $1.6B later that year and $12B annualized monthly revenue reported for 2025. The latest quarter shows that it has built a revenue lead over Anthropic, but also that scale has not resolved its cost burden.

The new signal is the divergence between commercial scale and consumer-product momentum: ChatGPT user growth reportedly stalled while adjusted operating income remained deeply negative. That makes the revenue lead less conclusive as a measure of operating strength.

First-order effects

  • OpenAI enters the period with roughly a $1B quarterly revenue advantage over Anthropic, strengthening its position in their immediate commercial rivalry.
  • A reported −122% adjusted operating margin and stalled ChatGPT user growth put immediate pressure on OpenAI to improve the economics of growth rather than rely solely on expanding revenue.

Second-order effects

  • Anthropic and other AI vendors can compete more directly on sustainable unit economics and enterprise monetization if OpenAI’s larger revenue base continues to carry outsized operating losses.
  • Slower ChatGPT user growth raises the importance of retaining and monetizing existing users and business customers, shifting competitive attention from user acquisition toward conversion and usage economics.

Third-order effects

  • If frontier-model providers can grow revenue rapidly while losses remain proportionally larger, the market may increasingly sort companies by access to capital and ability to turn AI usage into durable margins, not by headline revenue alone.
  • A persistent gap between consumer-user growth and revenue growth would suggest the sector is moving from an adoption race toward a more constrained contest over monetization, infrastructure costs, and customer retention.

The trend: Generative-AI leaders are entering a phase where commercial scale is increasingly judged against the cost of sustaining it and the durability of user growth.

Discussion

  • @edzitron Ed Zitron on x
    Jesus christ, OpenAI had a negative 122% operating margin for Q1 2026 and growth in ChatGPT has stalled. https://www.theinformation.com/ ... [image]
  • @edzitron.com Ed Zitron on bluesky
    Jesus christ!  OpenAI had a negative 122% operating margin for Q1 2026 and growth in ChatGPT has stalled.  —  Very nice Mr. Altman!  Well done sir!  —  www.theinformation.com/articles/ ope...  [image]