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


FILE PHOTO: OpenAI logo is seen in this illustration taken May 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

April 27 (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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