OpenAI burned through $1.22 per dollar earned even after stripping out stock-based compensation

2026-05-22 · Source: The Decoder · Field: Finance & Economics — Capital Markets & Investment Management, Corporate Finance & Treasury, Economic Analysis & Policy · Depth: Fundamental Awareness, quick

Summary

OpenAI reported an adjusted operating margin of minus 122 percent in Q1 2026, indicating a loss of \$1.22 for every dollar earned, even after excluding stock-based compensation. The company's total revenue reached approximately \$5.7 billion, surpassing rival Anthropic by about \$1 billion. Growth was primarily driven by the Codex coding agent, increased enterprise sales, and initial ad tests within ChatGPT, which averaged 905 million weekly users, falling short of its one-billion target. Meanwhile, Anthropic is rapidly closing the financial gap, with annualized revenue reportedly at nearly \$45 billion compared to OpenAI's roughly \$30 billion, and projects close to \$11 billion in Q2 revenue with an operating profit of nearly \$600 million. Both companies are reportedly considering IPOs starting in Q4.

Key takeaway

For investors tracking AI market leaders, OpenAI's Q1 2026 adjusted operating margin of -122% signals a substantial burn rate despite high revenue. This contrasts sharply with Anthropic's projected Q2 operating profit of nearly \$600 million. You should closely scrutinize the Q4 IPO plans and long-term financial sustainability of both companies, as this divergence suggests a critical period for market share and profitability in the competitive AI landscape.

Key insights

OpenAI's Q1 2026 financials reveal significant losses despite high revenue, while Anthropic rapidly gains ground and projects profitability.

Topics

• OpenAI Financials
• Anthropic Revenue
• AI Market Competition
• Operating Margin
• IPO Prospects
• ChatGPT User Growth

Best for: Investor, Executive, Tech Journalist

Related on AIssential

• Anthropic says it’s about to have its first profitable quarter — Anthropic's projected Q2 profitability and rapid revenue growth highlight intense competition and high compute costs in the AI sector.
• OpenAI tripled revenue to $5.7 billion in Q1 but burned through $3.7 billion to get there — OpenAI's rapid revenue growth is offset by substantial operational burn and competitive pressures, impacting its IPO timeline.
• OpenAI files confidentially for IPO, following Anthropic — The AI industry's race to IPO highlights intense capital demands and valuation complexities amid high burn rates and competitive pressures.
• How Anthropic Overtook OpenAI with US$965bn Valuation — Anthropic's US$965bn valuation, driven by enterprise focus and compute expansion, positions it ahead of OpenAI.
• AI startup revenue hits $80 billion, but Anthropic and OpenAI take almost all of it — AI startup revenue is highly concentrated, with Anthropic and OpenAI capturing 89% of the $80 billion market.
• OpenAI, Anthropic Employees Have Already Cashed Out About $14 Billion — The rapid growth of AI companies like OpenAI and Anthropic has generated significant employee wealth, totaling \$14 billion in cash-outs.

Open in AIssential →

Editorial summary, takeaway, and curation by AIssential. Original article published by The Decoder.